Li Auto greenshoe lifts seven-year convertibles to $862.5 million

By Wendy Van Sickle

Columbus, Ohio, April 12 – Underwriters for Li Auto Inc.’s 0.25% seven-year convertible notes fully exercised their $112.5 million greenshoe, increasing the total deal size to $862.5 million, according to a news release.

The company priced $750 million of the convertibles after the market close on April 7 at par with an initial conversion premium of 27.5%, as previously reported.

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.

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.

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.

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