Nio expects $ 1.3 billion in convertible notes, half of which is unpaid interest

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Nio Inc. NIO,
-1.05%
announced on Wednesday the price of $ 1.3 billion in convertible banknotes, which included $ 650 million in 2026 outstanding banknotes and $ 650 million in 2027 outstanding banknotes. unsecured 2026 will not pay interest and the principal amount will not be accrued. Nio shares fell 0.3% in premarket trading. The 2027 senior bonds will pay interest at a rate of 0.50% per annum. Holders may convert the 2026 Notes at any time beginning August 1, 2025 and the 2027 Notes may be converted from August 1, 2026 into cash, American Depository Shares (ADS) or a combination of money and ADS. The initial conversion rate of notes to ADS is the equivalent of $ 93.06 per ADS, which is 50% higher than Tuesday’s closing price of $ 62.04. Shares of Nio have risen 187.0% over the past three months to Tuesday, while the iShares MSCI China MCHI ETF
+ 1.16%
gained 8.0% and the S&P 500 SPX,
+ 0.04%
has advanced 8.2%.

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