Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Nio announced Thursday it has informed holders of its 0.50% Convertible Senior Notes due 2027 that they have the option to require the company to repurchase their notes for cash on February 1, 2025.
In the first days of 2024, Nio announced that it had notified holders of its 0.00% convertible senior notes due 2026 of their right to require the company to repurchase all or a portion of the notes for cash on February 1.
A similar announcement was made by Nio in January 2022; however, none of the noteholders exercised their repurchase rights at that time, and no notes were surrendered for repurchase.
Nio said on Thursday that the repurchase right, in line with the terms of the notes, allows holders to sell their notes back to the company at 100% of the principal amount, plus any accrued interest up to January 31, 2025.
“Eeach holder has the right, at the option of such holder, to require the Company to repurchase all of such holder’s Notes or any portion thereof that is an integral multiple of US$1,000 principal amount for cash on February 1, 2025 (the “Repurchase Right”),” Nio said in a statement. “The Repurchase Right expires at 5:00 p.m., New York City time, on Thursday, January 30, 2025.”
As of December 25, 2024, $378.5 million in principal remains outstanding. If all holders opt for repurchase, the EV maker would pay $378.5 million in total. Nio shares closed at $4.62 on Tuesday and have lost 49% of their value year to date.
Nio reached last week a new weekly record of insured units in China with 7,500 vehicles including 5,400 of its main Nio brand and 2,100 units of its recently launched Onvo brand.
As confirmed earlier this month by Nio’s chief executive, the company’s third EV manufacturing plant is planned to begin production in the third quarter of next year. The factory is located in Huainan, Hefei, where Nio’s two existing factories are also situated.
Written by Cláudio Afonso | LinkedIn | X
