NIO Stock Drops 4% After EV Maker Plans to Issue $1 Billion in Convertible Senior Notes

Tiger Newspress2023-09-19

Electric vehicle maker NIO plans to raise $1.0 billion by issuing convertible senior notes to pare debt and boost its balance sheet. The shares dropped 4% in premarket trading Tuesday.

The company will raise $500 million each by issuing convertible senior notes that will mature in 2029 and 2030, NIO said Tuesday.

Upon conversion, NIO said it would pay or deliver to “such converting holders, as the case may be, cash, the company’s American Depositary Shares, each currently representing one Class A ordinary share of the company, or a combination of cash and ADSs, at the company’s election.”

NIO said that subject to certain conditions it can redeem for cash all or part of the 2029 and 2030 notes on or after October 2027 and 2028, respectively.

Part of the proceeds could also be used toward meeting general corporate needs, NIO said.

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Comments

  • Trentc
    2023-09-19
    Trentc
    Under 10 & Shorts back too $6.5
  • Dianto
    2023-09-19
    Dianto
    It is Nio in financial problem in foreseeable future?
  • Mugil
    2023-09-19
    Mugil
    Share your opinion about this news…
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