- ZTO Express (Cayman) ( NYSE: ZTO ) has priced $870M of convertible senior notes due 2027.
- The initial purchaser is granted a 13-day period to purchase up to an additional $130M in aggregate principal amount of the notes.
- Net proceeds from the offering will be used to pay the cost of the capped call transactions and the remainder of the net proceeds for (i) enhancement of the scale and capability of our logistics operations; (ii) investment in the logistics ecosystem; and (iii) working capital and other general corporate purposes.
- The notes will mature on September 1, 2027, unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date.
- The initial conversion rate of the notes is 31.6296 of the Company's American Depositary Shares, each currently representing one Class A ordinary share of the company, per $1,000 principal amount of notes, which is equivalent to an initial conversion price of ~$31.62/ADS and represents a conversion premium of ~30%.
- The notes will bear interest at a rate of 1.50% per year, payable semiannually in arrears on March 1 and September 1 of each year, beginning on March 1, 2023.
- The cap price of the capped call transactions is initially US$36.48 per ADS, and is subject to adjustment under the terms of the capped call transactions.
- Offering is expected to close on or about August 29, 2022.
- Shares are up 1.97% premarket .
- Earlier, ZTO Express to offer $870M in convertible senior notes .
For further details see:
ZTO Express prices $870M debt offering