By Abigail W. Adams
Portland, Me., Jan. 10 – Luckin Coffee Inc. priced $400 million five-year convertible notes after the market close on Thursday at the midpoint of talk at par with a coupon of 0.75% and an initial conversion premium of 30%.
Price talk was for a coupon of 0.5% to 1% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the bookrunners for the Rule 144A and Regulation S convertible notes offering, which carries a greenshoe of $60 million.
The notes are non-callable. They are putable on Jan. 15, 2023.
The notes priced concurrently with an upsized secondary offering of 9 million American Depositary Shares, which priced at $42.00 a share.
The initial size of the offering was 7.2 million ADS.
Shareholder Centurium Capital also sold 4.8 million ADS for a total secondary offering of 13.8 million shares.
Credit Suisse, Morgan Stanley, China International Capital Corp. Hong Kong Securities Ltd. and Haitong International Securities Co. Ltd. were joint bookrunners for the ADS offering, which carries a greenshoe of 2.07 million ADS.
Proceeds from the concurrent offerings will be used general corporate purposes, including store network and international expansion, retail initiative, capital expenditures, research and development and sales and marketing.
Luckin Coffee is a Beijing-based coffee shop chain.
| Issuer: | Luckin Coffee Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Maturity: | Jan. 15, 2025
|
| Bookrunners: | Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $54.60
|
| Conversion rate: | 18.3150
|
| Call options: | None
|
| Put options: | Putable on Jan. 15, 2023
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 14
|
| Distribution: | Rule 144A and Regulation S
|
| Talk: | 0.5% to 1% and an initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: LK
|
| Stock reference price: | $42.00 in concurrent offering
|
| Market capitalization: | $10.66 billion
|
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