NIO Inc. Announces Closing of US$1.5 Billion Convertible Senior Notes
SHANGHAI, China, Jan. 19, 2021 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO) (“NIO” or the “Company”), a pioneer in China’s premium smart electric vehicle market, today announced that it closed the
offering (the “Notes Offering”) of US$750 million in aggregate principal amount of convertible senior notes due 2026 (the “2026 Notes”) and US$750 million in aggregate principal amount of
convertible senior notes due 2027 (the “2027 Notes,” and, together with the 2026 Notes, the “Notes”), which included the exercise in full by the initial purchasers in the Notes Offering of their
option to purchase up to an additional US$100 million in aggregate principal amount of the 2026 Notes and US$100 million in aggregate principal amount of the 2027 Notes. The Notes were sold to
persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”). The Company plans to use the net proceeds from the Notes Offering mainly for general corporate purposes and to further strengthen its cash and balance sheet positions.
Shortly after the pricing of the Notes, the Company entered into separate and individually privately negotiated agreements with certain holders of its outstanding 4.50% convertible senior notes due 2024 (the “2024 Notes”) to exchange approximately US$581.7 million principal amount of the outstanding 2024 Notes for the Company's American Depositary Shares (“ADSs”), each representing one Class A ordinary share of the Company (each, a “2024 Notes Exchange” and collectively, the “2024 Notes Exchanges”). The 2024 Notes Exchanges closed on January 15, 2021.
In connection with the 2024 Notes Exchanges, the Company also entered into agreements with certain financial institutions that are parties to the Company’s existing capped call transactions (which the Company had entered into in February 2019 in connection with the issuance of the 2024 Notes) shortly after the pricing of the Notes to terminate a portion of the relevant existing capped call transactions in a notional amount corresponding to the portion of the principal amount of such 2024 Notes exchanged. In connection with such terminations of the existing capped call transactions, the Company received deliveries of the ADSs in such amounts as specified pursuant to such termination agreements on January 15, 2021.