Market Overview

Nio Announces $100M Short-Term Debt Offering, Says It's 'Working On Other Financing Projects'

Share:
Nio Announces $100M Short-Term Debt Offering, Says It's 'Working On Other Financing Projects'

Chinese electric vehicle maker Nio Inc – ADR (NYSE: NIO) announced a financing deal Thursday that could serve to alleviate its precarious liquidity position.

Shanghai-based Nio said it has entered into a definitive agreement with an unaffiliated Asia-based investment fund to sell convertible notes worth $70 million through a private placement.

The Bank of New York Mellon, London Branch will serve as the trustee, Nio said.

The company expects the private placement to close on or around Feb. 10 contingent on satisfaction of customary closing conditions.

Nio also said that it consummated another convertible note offering in January to another unaffiliated Asia-based investment fund on similar terms.

The aggregate proceeds from the two placements is around $100 million.

The notes, according to Nio, will bear zero interest and mature Feb. 4, 2021. The holders  can convert the note six months from the issue date into ADSs at a price of $3.07 per ADS.

"The company is currently working on several other financing projects, the outcome of which is uncertain at this stage," Nio said in the release.

Even as the new Wuhan coronavirus scare threatens the fledgling recovery at Nio, it is facing a financing crunch. The company's cash position at the end of September 2019 stood at an anemic $274.3 million.

Confirmation by Chinese automaker Guangzhou Automobile Group Co Ltd (OTC: GNZUF) and Nio in mid-January that they are negotiating a $150-million financing deal Nio sent shares higher.

The stock was down 1.94% at $4.30 at the time of publication Thursday.

Related Links:

Nio Shares Retest $4 Level After December, Q4 Deliveries Beat Guidance

Nio Will Build 200 Brick-And-Mortar Stores This Year, Report Says

Photo courtesy of Nio. 

Posted-In: electric vehicles EVsNews Financing Offerings Trading Ideas Best of Benzinga

 

Related Articles (GNZUF + NIO)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com