Vipshop Holdings to offer $400 million convertibles due 2019

By Toni Weeks

San Luis Obispo, Calif., March 10 - Vipshop Holdings Ltd. said it plans to begin a $400 million registered underwritten public offering of its convertible senior notes due 2019.

The deal will have a 30-day greenshoe option for an additional $60 million of the notes.

The notes will be convertible at any time for American Depositary Shares.

Proceeds will be used for repayment of debt under some of the company's facility agreements that were connected to a recent acquisition, with the balance to go toward general corporate purposes.

Goldman Sachs (Asia) LLC and Deutsche Bank Securities will be the joint bookrunning managers. BofA Merrill Lynch and China Renaissance Securities (Hong Kong) Ltd. are the co-managers.

The company also announced a registered underwritten secondary public offering of 1.14 million American Depositary Shares, with each ADS representing two ordinary shares.

The notes offering is not contingent on the closing of the secondary offering of the ADSs and vice versa.

The online discount retailer is based in Guangzhou, China.

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