Alibaba Completes Private Offering Of US$5 Bln Of 0.50% Convertible Senior Notes Due 2031

(RTTNews) - Alibaba Group Holding Limited (BABA) said it completed its private offering of US$5 billion aggregate principal amount of 0.50% Convertible Senior Notes due 2031, which amount includes the exercise in full by the initial purchasers of their option to purchase an additional US$500 million aggregate principal amount of the Notes.

The company also entered into additional capped call transactions with one or more of the initial purchasers and/or their affiliates and/or other financial institutions, using US$63.75 million of the net proceeds from the sale of the additional Notes. The capped call transactions are generally expected to reduce potential dilution to the ADSs and the ordinary shares of the Company upon conversion of the Notes by effectively increasing the conversion premium from approximately 30% to 100% over the last reported sale price of US$80.80 per ADS on the New York Stock Exchange on May 23, 2024.

The initial conversion rate for the Notes is 9.5202 ADSs per US$1,000 principal amount of the Notes, which is equivalent to an initial conversion price of about US$105.04 per ADS. The initial conversion price represents a premium of about 30% over the last reported sale price of US$80.80 per ADS on the NYSE on May 23, 2024.