- ZTO Express (Cayman) shares dropped over 3% pre-market on Wednesday after the express delivery company launched an offering of US$870M of convertible senior notes due 2027 .
- The notes will be general senior unsecured obligations of ZTO and mature on Sep. 01, 2027, unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date.
- The initial purchaser in the notes offering will be granted an option to purchase up to an additional $130M in aggregate principal amount of the notes. The option is exercisable for settlement within a 13-day period, beginning on and including the date of the offering.
- A portion of the net proceeds from the offering will be used to pay the cost of the capped call transactions, with the remainder proceeds to be used for enhancement of the scale and capability of ZTO Express' logistics operations; investment in the logistics ecosystem; and working capital and other general corporate purposes.
- In connection with the pricing of the notes, the company expects to enter into capped call transactions with the initial purchaser and/or its affiliates and/or other financial institutions.
For further details see:
ZTO Express to offer $870M in convertible senior notes