Nio on Wednesday announced interest and conversion prices for its $650 million convertible notes due 2026 and $650 million convertible notes due 2027.
The 2026 notes will not bear interest, and the principal amount of the 2026 notes will not accrete.
The 2027 notes will bear interest at a rate of 0.50% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021.
The 2026 notes will mature on February 1, 2026 and the 2027 notes will mature on February 1, 2027, unless repurchased, redeemed or converted in accordance with their terms prior to such date.
Prior to August 1, 2025, in the case of the 2026 notes, and August 1, 2026, in the case of the 2027 notes, the notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods.
Holders may convert their notes at their option at any time on or after August 1, 2025, in the case of the 2026 notes, or August 1, 2026, in the case of the 2027 notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date.
Upon conversion, Nio will pay or deliver to such converting holders cash, its American Depositary Shares (“ADSs”), each currently representing one Class A ordinary shares, or a combination of cash and ADSs, at Nio's election.
The initial conversion rate of the 2026 notes is 10.7458 ADSs per US$1,000 principal amount of such 2026 notes, which is equivalent to an initial conversion price of approximately US$93.06 per ADS and represents a conversion premium of approximately 50.0% above the closing price of its ADSs on January 12.
The initial conversion rate of the 2027 notes is 10.7458 ADSs per US$1,000 principal amount of such notes, which is equivalent to an initial conversion price of approximately US$93.06 per ADS and represents a conversion premium of approximately 50.0% above the closing price of its ADSs on January 12.
Nio said on Monday it plans to offer $1.3 billion in convertible notes which include $650 million in notes due 2026 and $650 million due 2027, the company said during the after-hours trading session.
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