By Abigail W. Adams
Portland, Me., Jan. 13 – Nio Inc. priced $1.3 billion of convertible notes in two tranches after the market close on Tuesday, according to a company news release.
The company priced a $650 million tranche of five-year notes at par at the rich end of talk with a coupon of 0% and an initial conversion premium of 50%.
Price talk was for a coupon of 0% to 0.5% and an initial conversion premium of 45% to 50%, according to a market source.
The company also priced a $650 million tranche of six-year notes at par at the rich end of talk with a coupon of 0.5% and an initial conversion premium of 50%.
Price talk was for a coupon of 0.5% to 1% and an initial conversion premium of 45% to 50%.
Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and China International Capital Corp. Ltd. are joint bookrunners for the Rule 144A offering.
Each tranche carries a greenshoe of $100 million.
The five-year notes are non-callable until Feb. 6, 2024 and then subject to a 130% hurdle. They are putable on Feb. 1, 2024 or upon a fundamental change.
The six-year notes are non-callable until Feb. 6, 2025 and then subject to a 130% hurdle. They are putable on Feb. 1, 2025 or upon a fundamental change.
The notes will be settled in cash, ADSs or a combination of both at the company’s option.
The company intends to enter into privately negotiated transactions with holders of its 4.5% convertible notes due 2024 to exchange $581.1 million of the notes for American Depositary Shares.
Proceeds will be used for general corporate purposes.
Nio is a Shanghai-based electric car manufacturer.
| Issuer: | Nio Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $1.3 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and China International Capital Corp. Ltd.
|
| Pricing date: | Jan. 12
|
| Settlement date: | Jan. 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: NIO
|
| Stock price: | $62.04 at market close Jan 12
|
| Market capitalization: | $97.58 billion
|
|
|
| 2026 notes
|
| Amount: | $650 million
|
| Greenshoe: | $100 million
|
| Maturity: | Feb. 1, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 50%
|
| Conversion price: | $93.06
|
| Conversion rate: | 10.7458
|
| Call options: | Non-callable until Feb. 6, 2024 and then subject to a 130% hurdle
|
| Put options: | Putable on Feb. 1, 2024 or upon a fundamental change
|
| Talk: | Coupon of 0% to 0.5% and initial conversion premium of 45% to 50%
|
|
|
| 2027 notes
|
| Amount: | $650 million
|
| Greenshoe: | $100 million
|
| Maturity: | Feb. 1, 2027
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 50%
|
| Conversion price: | $93.06
|
| Conversion rate: | 10.7458
|
| Call options: | Non-callable until Feb. 6, 2025 and then subject to a 130% hurdle
|
| Put options: | Putable on Feb. 1, 2025 or upon a fundamental change
|
| Talk: | Coupon of 0.5% to 1% and initial conversion premium of 45% to 50%
|
|
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