NIO - NIO Inc. Announces Proposed Offering of US$1 Billion Convertible Senior Notes | Benzinga
SHANGHAI, China, Sept. 18, 2023 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE:NIO, HKEX: 9866, SGX: NIO)) ("NIO" or the "Company"), a pioneer and a leading company in the premium smart electric vehicle market, today announced a proposed offering (the "Notes Offering") of US$500 million in aggregate principal amount of convertible senior notes due 2029 (the "2029 Notes") and US$500 million in aggregate principal amount of convertible senior notes due 2030 (the "2030 Notes," and, together with the 2029 Notes, the "Notes"), subject to market conditions and other factors. The Company intends to grant the initial purchasers in the Notes Offering an option, exercisable within a 30-day period beginning on, and including, the date of the Notes Offering, to purchase up to an additional US$75 million in aggregate principal amount of the 2029 Notes and up to an additional US$75 million in aggregate principal amount of the 2030 Notes.
When issued, the Notes will be senior, unsecured obligations of NIO. The 2029 Notes will mature on October 15, 2029 and the 2030 Notes will mature on October 15, 2030, unless repurchased, redeemed or converted in accordance with their terms prior to such date.
Holders may convert the Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the relevant maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company's American Depositary Shares ("ADSs"), each currently representing one Class A ordinary share of the Company, or a combination of cash and ADSs, at the Company's election. After the resale restriction termination date (as will be defined in the terms of the Notes) and pursuant to the applicable procedures and requirements, holders who receive ADSs upon conversion of the Notes may surrender such ADSs to the Company's ADS depositary for exchange into Class A ordinary shares for trading on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") or the Singapore Exchange Securities Trading Limited ("SGX-ST"). The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes.
The Company may redeem for cash all but not part of the 2029 Notes and/or the 2030 Notes if less than 10% of the aggregate principal amount of the relevant series of the Notes originally issued remains outstanding at such time. In addition, the Company may redeem all but not part of the 2029 Notes and/or the 2030 Notes in the event of certain changes in the tax laws. On or after October 22, 2027, ...