Nio seeks to price its 2029 notes at a coupon rate of 3.5 percent to 4.0 percent and its 2030 notes at a coupon rate of 4.25 percent to 4.75 percent, according to Bloomberg.
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Nio (NYSE: NIO) announced earlier today that it plans to issue $1 billion in convertible senior notes. Now, a Bloomberg report provides more details.
Nio is looking to price the coupon rate on its $1 billion convertible senior notes at up to 4.75 percent, Bloomberg said in the report today, citing a person familiar with the matter.
The electric vehicle (EV) maker plans to issue $500 million in aggregate principal amount of convertible senior notes due 2029 and $500 million in convertible senior notes due 2030, according to its announcement.
Initial purchasers will be able to exercise an option within 30 days of the date of issuance of the notes to purchase up to an additional $75 million in aggregate principal amount of the 2029 notes and up to an additional $75 million of the 2030 notes.
The planned 2029 notes are looking to carry a coupon rate of 3.5 percent to 4.0 percent and a conversion premium of 27.5 percent to 32.5 percent over its share price, Bloomberg said, citing the person familiar with the matter.
The 2030 notes have a coupon rate of 4.25 percent to 4.75 percent and a conversion premium of 27.5 percent to 32.5 percent of the share price, according to the person.
Goldman Sachs, JPMorgan Chase, Morgan Stanley and CICC are the lead underwriters on the deal, according to the report.
Holders may convert the notes at any time prior to the maturity date. Upon conversion, Nio will pay or deliver cash, American Depositary Shares (ADSs) or a combination of cash and ADSs to such converting holders, Nio's announcement earlier today said.
Nio plans to use a portion of the net proceeds from the offering of the notes to repurchase certain existing debt securities and the remainder primarily to further strengthen its balance sheet position and for general corporate purposes, the company said.