Best Offers Up to $175 Million in Senior Convertible Notes; Stock Rises 2%

An entity of Alibaba Group has expressed interest in acquiring $100 million of the senior convertible notes in the logistics provider.
Anthony RussoSep 12,2019,23:45

Best Inc., (NYSE: Best) the smart supply chain solutions and logistics provider based in Hangzhou, announced a $175 million offer of senior convertible notes today. 

Best said in a statement this morning, it will allow initial purchasers of notes offering a 30-day option to buy up to an additional $25 million of notes. Chinese E-commerce giant, Alibaba Group Holding Ltd., expressed interest in purchasing a minimum of $100 million of the notes, Best said in its statement. 

 Although Best has yet to determine the interest rates and conversion rates, the notes will be convertible into American Depositary shares of the $1,000 principal amount, at option of holders, Best said in its statement. 

The notes, which will expire in 2024, will not be able to be redeemed by Best before the maturity date, the company said in its statement. Holders will have the option with all or a portion of their notes to require Best to repurchase for cash in 2022. 

Best expects to use capped call transactions, which are designated to reduce potential dilution to existing holders of Class A shares and ADSs of the company, according to Bests statement.

Last month Best reported its second quarter earnings, which the company said revenue reached $1.3 million, up 31 percent year-over-year. Net loss narrowed to $3.3 million, compared with $14.2 million a year ago.

Best’s stock closed this afternoon trading up 2 percent, at $5.53 per share.