Nine costs $ 1.3 billion in convertible notes, half of which do not pay interest

Nine costs $ 1.3 billion in convertible notes, half of which do not pay interest

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Nio Inc. NIO,
-1.05%
announced on Wednesday that the price of the $ 1.3 billion in convertible notes, which includes $ 650 million in notes by 2026 and $ 650 million in 2027 dollars. The manufacturer of electric vehicles in China has said that the 2026 senior uninsured notes will not pay interest, and the principal amount will not accrue. Nio’s share decreased by 0.3% in market trading. The 2027 senior notes pay interest at a rate of 0.50% per annum. The holders may convert the 2026 notes at any time on or after 1 August 2025 and the 2027 notes may be converted to cash, US depositary (ADS) or a combination of cash and ADS on or after 1 August 2026. The initial conversion rate for notes to ADS is equal to $ 93.06 per ADS, which is 50% above the closing price of $ 62.04 on Tuesday. Nine stocks rose 187.0% over the past three months to Tuesday, while the iShares MSCI China ETF MCHI,
+ 1.16%
achieved 8.0% and the S&P 500 SPX,
+ 0.04%
increased by 8.2%.

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