Chinese electric vehicle (EV) maker Nio (NYSE: NIO) has closed the offering convertible notes, with the amount raised to $1.5 billion from the originally planned $1.3 billion.
The offering includes $750 million in aggregate principal amount of convertible senior notes due 2026 and $750 million due 2027, it said in a statement.
The amount was raised because of the exercise in full by the initial purchasers in their option to purchase up to an additional $100 million in the 2026 notes and $100 million in the 2027 notes.
Nio said it plans to use the net proceeds from mainly for general corporate purposes and to further strengthen its cash and balance sheet positions.
Shortly after the pricing of the notes, Nio entered into separate and individually privately negotiated agreements with certain holders of its outstanding 4.50% convertible senior notes due 2024 to exchange approximately $581.7 million principal amount of the outstanding 2024 notes for its ADSs, each representing one Class A ordinary share. The 2024 Notes Exchanges closed on January 15, 2021, it said.
On January 13, Nio 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.
(Source: cnEVpost)
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