Li Auto Inc. Prices Offering of US$750 Million Convertible Senior Notes

BEIJING, China, April 08, 2021 (GLOBE NEWSWIRE) -- Li Auto Inc. (Nasdaq: LI) (“Li Auto” or the “Company”), an innovator in China’s new energy vehicle market, today announced the pricing of US$750 million in aggregate principal amount of convertible senior notes due 2028 (the “Notes”) (the “Notes Offering”). The Notes have been offered to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from the registration requirement provided by Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act. In addition, the Company has granted the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$112.5 million aggregate principal amount of the Notes.

When issued, the Notes will be senior unsecured obligations of the Company. The Notes will bear interest at a rate of 0.25% per year, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2021. The Notes will mature on May 1, 2028, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. Prior to the close of business on the business day immediately preceding November 1, 2027, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Holders may convert any or all of their Notes at their option at any time on or after November 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s American depositary shares (“ADSs”), each currently representing two Class A ordinary shares of the Company, or a combination of cash and ADSs, at the Company’s election.

The initial conversion rate of the Notes is 35.2818 ADSs per US$1,000 principal amount of such Notes (which is equivalent to an initial conversion price of approximately US$28.34 per ADS and represents a conversion premium of approximately 27.5% above the closing price of the Company’s ADSs on April 7, 2021, which was US$22.23 per ADS). The conversion rate for the Notes is subject to adjustment upon the occurrence of certain events.