By Abigail W. Adams
Portland, Me., April 8 – Li Auto Inc. priced $750 million in seven-year convertible notes after the market close on Wednesday at par with a coupon of 0.25% and an initial conversion premium of 27.5%, according to a company news release.
Pricing came at the midpoint of talk for a coupon of 0% to 0.5% and at the cheap end of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.
Goldman Sachs & Co. LLC, CLSA Ltd., China International Capital Corp. Ltd., UBS Securities LLC and Barclays were bookrunners for the Rule 144A and Regulation S offering, which carries a greenshoe of $112.5 million.
The notes are non-callable except for a tax redemption.
They are putable on May 1, 2024 and May 1, 2026 and upon a fundamental change.
There is dividend protection.
The notes will be settled in cash, American Depositary Shares or a combination of both at the company’s option.
Net proceeds are expected to be $733.9 million or $844.2 million if the greenshoe is exercised in full.
Proceeds will be used for the research and development of new vehicle models and technologies and for general corporate purposes.
Li Auto is a Beijing-based electric vehicle manufacturer.
| Issuer: | Li Auto Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $750 million
|
| Greenshoe: | $112.5 million
|
| Maturity: | May 1, 2028
|
| Bookrunners: | Goldman Sachs & Co. LLC, CLSA Ltd., China International Capital Corp. Ltd., UBS Securities LLC and Barclays
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $28.34
|
| Conversion rate: | 35.2818
|
| Call options: | None
|
| Put options: | Putable on May 1, 2024 and May 1, 2026 and upon a fundamental change
|
| Pricing date: | April 7
|
| Settlement date: | April 12
|
| Distribution: | Rule 144A and Regulation S
|
| Talk: | Coupon of 0% to 0.5% and an initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: LI
|
| Stock price: | $22.23 at market close April 7
|
| Market capitalization: | $20.11 billion
|
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