🌟🌟🌟$NIO Inc.(NIO)$
dropped as much as 17% today after it launched a USD 1 billion convertible bond financing. The bonds are expected to have a split maturity with half due in 2029 and the other half in 2030.
Proceeds from the bond raising are earmarked for repayment of existing debt facilities and to bolster Nio's Balance Sheet.
Convertible Bonds are offered when companies are in need of cash and they can later be turned into shares in the company, potentially diluting value for existing share holders.
So it is not surprising that Nio's share price dropped so much today.
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