NIO - NIO Inc. Prices Offering of US$1 Billion Convertible Senior Notes | Benzinga
SHANGHAI, China, Sept. 19, 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 the pricing 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") (the "Notes Offering"). The Notes have been offered to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, the Company has granted 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 bear interest at a rate of 3.875% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2024. The 2030 Notes will bear interest at a rate of 4.625% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2024. 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 initial conversion rate of the 2029 Notes is 89.9685 ADSs per US$1,000 principal amount of such 2029 Notes (which is equivalent to an initial conversion price of approximately US$11.12 per ADS and represents a conversion premium of approximately 30% above the closing price of the Company's ADSs on September 19, 2023, which was US$8.55 per ADS). The initial conversion rate of the 2030 Notes is 89.9685 ADSs per US$1,000 principal amount of such Notes (which is equivalent to an initial conversion price of approximately US$11.12 per ADS and represents a conversion premium of approximately 30% above the closing price of the Company's ADSs on September 19, 2023). The relevant conversion rate for each series ...