Xiaomi talks $855 million 0% convertible bonds due 2027 at 105.25, up 42.5%-52.5%

By Abigail W. Adams

Portland, Me., Dec. 1 – Xiaomi Corp. plans to price $855 million in 0% convertible bonds due 2027 (Baa2) on Tuesday at 105.25 for a negative yield to maturity of 0.73%, a negative yield to worst of 1.021% and talk for an initial conversion premium of 42.5% to 52.5%, according to a market source.

Credit Suisse (Hong Kong) Ltd., Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc are joint bookrunners for the Regulation S offering.

The bonds are non-callable until Dec. 17, 2025 and then subject to a 130% hurdle.

They are putable at par on Dec. 17, 2025 or upon a change-of-control or delisting event.

The bonds are convertible at the to-be-determined initial conversion price based on a fixed exchange rate of HK$7.7529 to $1.

Proceeds will be used for working capital, investments and other general corporate purposes.

Xiaomi is a Beijing-based electronics company.

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