Chinese electric vehicle maker NIO’s shares plunged as much as nearly 6% to hit a low of HK$76.9 at one point after it on Monday announced its plan to issue $500 million of convertible senior notes due 2029 and another $500 million notes due 2030.
The interest rate, initial conversion rate and other terms of the notes to be determined at the time of pricing, it said.
Nio will grant the initial purchasers in the notes an option to purchase up to an additional $75 million of the 2029 notes, and up to an additional $75 million of the 2030 notes, exercisable within a 30-day period from the date of the notes offering.
Upon conversion, Nio will pay or deliver cash or its American Depositary Shares (ADS) or a combination of cash and ADS. Holders who receive shares upon conversion may exchange them for Class A ordinary shares for trading on the Hong Kong Stock Exchange or Singapore Exchange.
