Nio price $ 1.3 billion in convertible notes, half of which does not pay interest

Nio Inc. NIO,
-1.05%
on Wednesday announced the price of the $ 1.3 billion convertible notes, which included $ 650 million in notes due 2026 and $ 650 million in notes due 2027. The China-based electric vehicle maker said the 2026 senior unsecured notes would not pay interest nor the principal amount. will not increase. Nio’s stock slipped 0.3% in pre-market trading. The 2027 Senior Notes will pay interest at a rate of 0.50% per annum. Holders can convert the 2026 Notes at any time from August 1, 2025 and the 2027 Notes can be converted on or after August 1, 2026 into cash, US Depository Shares (ADS) or a combination of cash and ADS. The initial conversion rate for tickets to ADS is equivalent to $ 93.06 per ADS, which is 50% above Tuesday’s closing price of $ 62.04. Nio stock has climbed 187.0% in the past three months through Tuesday, while the iShares MSCI China ETF MCHI,
+ 1.16%
gained 8.0% and the S&P 500 SPX,
+ 0.04%
grew by 8.2%.