NIO has announced its intention to conduct a Notes Offering comprising $500 million of convertible senior notes due in 2029 (2029 Notes) and $500 million of convertible senior notes due in 2030 (2030 Notes), pending market conditions and other factors. Additionally, the company plans to grant the initial purchasers of these Notes an option, exercisable within 30 days from the date of the offering, to buy an extra $75 million of 2029 Notes and $75 million of 2030 Notes.
Once issued, these Notes will represent senior, unsecured obligations of NIO, with the 2029 Notes maturing on October 15, 2029, and the 2030 Notes maturing on October 15, 2030, unless certain conditions trigger repurchase, redemption, or conversion before those dates.
Holders of the Notes can convert them at any time before the second scheduled trading day just prior to their respective maturity dates. Upon conversion, they will receive cash, NIO’s American Depositary Shares (ADSs), or a combination of both, at the company’s discretion.
Further details such as interest rates, initial conversion rates, and other terms will be determined when the Notes are priced. The company also has the option to redeem these Notes under certain conditions.
NIO intends to use part of the proceeds from this offering to repurchase some of its existing debt securities and allocate the remainder for bolstering its balance sheet and general corporate purposes. It’s worth noting that this offering may influence the market price of NIO’s ADSs and Class A ordinary shares.
Finally, it’s important to mention that these Notes, along with the related securities, are not registered under the Securities Act of 1933 or other securities laws, and their sale is restricted to qualified institutional buyers under Rule 144A.
This press release serves as information about the pending Notes Offering, with no guarantee of its completion, and it’s not dependent on the repurchase of existing debt securities.