NIO Inc. Completes $378.3 Million Convertible Note Repurchase

NIO Inc. finishes its repurchase offer for Convertible Senior Notes, leaving a small amount outstanding.

Overview of NIO’s Recent Actions

NIO Inc. has successfully concluded its repurchase offer for its 0.50% Convertible Senior Notes due 2027, which were due to expire on January 30, 2025. The company reported that a total of US$378,312,000 in principal of the notes was validly surrendered for repurchase. Cash has been provided for this repurchase and is now with the paying agent for distribution to the noteholders who exercised their rights. After this action, only US$213,000 of the notes will remain outstanding and subject to the original terms. NIO, an innovator in electric vehicles, continues to strengthen its position in the smart electric vehicle market.

Positive Aspects of the Repurchase

• NIO’s completion of the repurchase underscores its commitment to effective capital management.
• The successful repurchase of US$378,312,000 highlights the company’s strong liquidity and financial health.
• With only US$213,000 remaining in outstanding notes, NIO reduces its future interest obligations, which enhances its balance sheet.

Concerns to Consider

• The substantial volume of Convertible Senior Notes repurchased may raise questions about potential financial distress or decreasing investor confidence in future prospects.
• The small amount of US$213,000 still outstanding indicates the company’s heavy reliance on debt financing, potentially reflecting concerns about its financial stability.
• The need for this repurchase might affect investor relations and alter market perceptions of NIO.

Frequently Asked Questions

What did NIO Inc. recently announce?

NIO Inc. announced the successful completion of its repurchase offer for the 0.50% Convertible Senior Notes due 2027.

What total principal amount did NIO repurchase?

NIO successfully repurchased US$378,312,000 of the Convertible Senior Notes.

What will happen to the remaining notes post-repurchase?

After the repurchase, US$213,000 in notes will remain outstanding under the existing terms.

Where can investors find additional information about the repurchase?

Investors can find more details on the SEC’s website or NIO’s investor relations page.

What is NIO Inc.’s area of expertise?

NIO Inc. specializes in designing and manufacturing smart electric vehicles, leading in innovative next-generation technologies.

Disclaimer: This text is a summary of a press release distributed by GlobeNewswire. For the complete details, see the original release.

Analysis of Hedge Fund Activity in NIO

In the last quarter, 167 institutional investors added NIO shares to their portfolios, while 244 reduced their holdings.

Notable transactions include:

• BLACKROCK, INC. decreased its holdings by 55,361,668 shares (-91.6%) in Q3 2024, representing an estimated $369,815,942.
• STATE STREET CORP cut its position by 18,825,554 shares (-85.8%) for an estimated $125,754,700.
• RENAISSANCE TECHNOLOGIES LLC significantly increased its stake by adding 12,236,000 shares (+4729.8%) in Q3 2024, at a value of approximately $81,736,480.
• MILLENNIUM MANAGEMENT LLC increased its holdings by 9,309,333 shares (+196.3%) for about $62,186,344.
• GEODE CAPITAL MANAGEMENT, LLC reduced its portfolio by 7,417,861 shares (-94.1%) totaling about $49,551,311.
• HSBC HOLDINGS PLC cut back by 7,246,704 shares (-80.4%), worth roughly $48,407,982.
• POINT72 ASSET MANAGEMENT, L.P. fully exited its position by removing 6,464,246 shares (-100%), which amounted to approximately $43,181,163.

For continuous updates on hedge fund activities, refer to Quiver Quantitative’s institutional holdings dashboard.

Complete Press Release

SHANGHAI, Jan. 31, 2025 (GLOBE NEWSWIRE) – NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO), a leading player in the global smart electric vehicle market, has announced the successful completion of its previously mentioned repurchase offer concerning its 0.50% Convertible Senior Notes due 2027 (CUSIP No. 62914VAF3). The offer expired at 5:00 p.m., New York City time, on January 30, 2025. According to data from The Deutsche Bank Trust Company Americas, acting as the paying agent, US$378,312,000 of the aggregate principal amount of the Notes were validly surrendered before the expiration deadline. Cash for the repurchase has been forwarded to the Paying Agent for distribution to the holders who exercised their rights. Following this repurchase, US$213,000 of the Notes will still be outstanding and governed by the current Indenture terms.

All documents filed with the SEC are available for free on the SEC website,
http://www.sec.gov, and on the Company’s website,
http://ir.nio.com.

About NIO Inc.

NIO Inc., founded in November 2014, is a pioneering company in the global smart electric vehicle market. With a vision for a sustainable future, NIO aims to combine innovative technology with exceptional user experience. The company designs, develops, and manufactures electric vehicles, while pushing the boundaries of next-generation technologies. NIO distinguishes itself through technological advancements, quality products and services, and a collaborative community approach. The NIO brand offers premium smart electric vehicles, along with family-oriented models under the ONVO brand and high-end small electric cars under the FIREFLY brand.

For further details, visit: http://ir.nio.com

Investor Relations

ir@nio.com

Media Relations

global.press@nio.com

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The views and opinions presented in this article reflect those of the author and do not necessarily represent those of Nasdaq, Inc.