NIO Inc. Offers Unique Repurchase Program for Convertible Senior Notes

NIO Inc. has announced a window for the repurchase of its Convertible Senior Notes, running from December 30, 2024, to January 30, 2025.

Key Details About the Repurchase Program

NIO Inc. has informed holders of its 0.50% Convertible Senior Notes due 2027 of their right to require the company to repurchase these notes for cash during the specified period. The repurchase price will equal 100% of the principal amount plus any accrued interest, with the actual repurchase taking place on February 3, 2025, since February 1 falls on a Saturday. As of December 25, 2024, the company holds approximately $378.5 million in outstanding notes. Additional details on how to exercise this right will be available in the Repurchase Right Notice from the Depository Trust Company and The Deutsche Bank Trust Company Americas. This announcement serves purely informational purposes and is not an offer to purchase securities. Those looking for further information should refer to the Indenture for complete terms.

Advantages of the Repurchase Option

• This repurchase option offers a chance for holders of the Convertible Senior Notes to convert their investment into cash ahead of maturity, providing added financial flexibility.
• NIO is taking proactive steps towards managing its debt, which may enhance investor trust and show financial prudence.
• Accrued interest will be paid on the next business day following the designated repurchase date, guaranteeing prompt payment to holders.

Considerations for Investors

• The announcement of the repurchase option could raise red flags concerning potential liquidity challenges or future financing constraints.
• The overall cash required to repurchase all outstanding notes hovers around $378.5 million, posing a risk to the company’s cash reserves if all notes are presented for repurchase.
• The need to notify holders of the repurchase reflects a level of urgency, possibly signaling financial instability or uncertainty for the company’s immediate future.

Frequently Asked Questions

What are the terms of NIO’s 0.50% Convertible Senior Notes repurchase?

NIO Inc. will repurchase the Notes at 100% of the principal plus any accrued interest by February 3, 2025.

When can holders exercise the Repurchase Right?

Holders may exercise their Repurchase Right from 9:00 a.m. on December 30, 2024, until 5:00 p.m. on January 30, 2025.

What is the total principal amount of the outstanding Notes?

The total principal amount of outstanding Notes is $378,525,000.00 as of December 25, 2024.

Where can holders find the Repurchase Right Notice?

The Repurchase Right Notice is accessible through the Depository Trust Company and The Deutsche Bank Trust Company Americas.

What should holders do if they have questions about the repurchase?

Holders should reach out to The Deutsche Bank Trust Company Americas for any questions regarding the repurchase process.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

Institutional Investor Activity in NIO

In the most recent quarter, 168 institutional investors have added $NIO shares to their portfolios, while 267 have decreased their holdings.

Here are some of the notable recent transactions:

• BLACKROCK, INC. sold 55,361,668 shares (-91.6%) in Q3 2024
• BAILLIE GIFFORD & CO sold 18,904,985 shares (-100.0%) in Q2 2024
• STATE STREET CORP sold 18,825,554 shares (-85.8%) in Q3 2024
• RENAISSANCE TECHNOLOGIES LLC bought 12,236,000 shares (+4729.8%) in Q3 2024
• MILLENNIUM MANAGEMENT LLC added 9,309,333 shares (+196.3%) in Q3 2024
• GEODE CAPITAL MANAGEMENT, LLC sold 7,417,861 shares (-94.1%) in Q3 2024
• HSBC HOLDINGS PLC reduced their position by 7,246,704 shares (-80.4%) in Q3 2024

To stay updated on hedge fund activity regarding stock portfolios, visit Quiver Quantitative’s institutional holdings dashboard.

Full Release

SHANGHAI, Dec. 26, 2024 (GLOBE NEWSWIRE) — NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a prominent player in the global smart electric vehicle market, today announced a notification to holders of its 0.50% Convertible Senior Notes due 2027 (CUSIP No. 62914VAF3) (the “Notes”). According to the Indenture dated January 15, 2021 (the “Indenture”), holders have the right to require the Company to repurchase all or part of their Notes, in increments of $1,000 principal amount, for cash by February 1, 2025 (the “Repurchase Right”). This right will expire at 5:00 p.m., New York City time, on January 30, 2025.

As per U.S. Securities and Exchange Commission (SEC) rules, the Company will file a Tender Offer Statement on Schedule TO. Additionally, relevant documents describing the terms and procedures for exercising the Repurchase Right will be available via the Depository Trust Company and The Deutsche Bank Trust Company Americas. The Company, its board of directors, and its staff make no recommendations whether holders should exercise or decline the Repurchase Right.

Under the terms of the Repurchase Right, each holder can request the Company to repurchase their Notes in increments of $1,000, with the repurchase price set at 100% of the principal amount plus any accrued and unpaid interest up to but not including February 1, 2025, as detailed in the Indenture. Since February 1, 2025, lands on a Saturday, the actual repurchase will occur on February 3, 2025. Interest payments will be made to holders on all Notes through January 31, 2025, who were registered as of January 15, 2025. As of December 25, 2024, NIO has $378,525,000.00 in outstanding Notes. Should all holders choose to repurchase their Notes, the total cash outlay would be $378,525,000.00.

The opportunity for holders to exercise the Repurchase Right begins at 9:00 a.m., New York City time, on December 30, 2024, and will conclude at 5:00 p.m., New York City time, on January 30, 2025. To redeem their notes, holders need to adhere to the transmittal procedures outlined in the Company’s Repurchase Right Notice, available via the Depository Trust Company and The Deutsche Bank Trust Company Americas.