BABA-SW (09988.HK) -0.500 (-0.636%) Short selling $350.10M; Ratio 9.199% announced that it proposed to offer privately US$4.5 billion in aggregate principal of 0.5% Convertible Senior Notes due 2031. The Company also granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$500 million aggregate principal amount of the Notes. The Notes Offering is expected to close on 29 May 2024.
BABA estimated that the net proceeds from the Notes Offering will be approximately US$4.436 billion (or US$4.93 billion if the initial purchasers’ option is exercised in full), after deducting the initial purchasers’ discounts and estimated expenses payable by the Company.
BABA intends to use the net proceeds from the Notes Offering to repurchase about 14.8 million of its American depositary shares (ADSs), each currently representing 8 ordinary shares, at a price per ADS equal to US$80.8, the last reported sale price per ADS on the NYSE on 23 May 2024.
The Company also intends to use the proceeds to fund further share repurchases from time to time, and fund the US$574 million cost of entering into the capped call transactions to reduce potential dilution to the ADSs and the ordinary shares.
The Notes will mature on 1 June 2031. The Notes will bear interest at a rate of 0.5% per year, payable in arrears on 1 June and 1 December of each year, beginning on 1 December 2024.
The initial conversion rate for the Notes will be 9.5202 ADSs per US$1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately US$105.04 per ADS. The initial conversion price represents a premium of approx. 30% over the last reported sale price of US$80.8 per ADS on the NYSE on 23 May 2024.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-24 16:25.)
