Nio to Sell an Additional $100 Million Bonds to Two Asian Funds

The news today follows the first set of bonds the company announced last week.

Anthony Russo
    Feb 14, 2020 8:50 AM  PT
Nio to Sell an Additional $100 Million Bonds to Two Asian Funds
author: Anthony Russo   

Nio (NYSE: NIO) announced Friday that it will sell an additional $100 million worth of convertible notes to two unaffiliated Asian-based investment funds.

The Shanghai-based electric vehicle (EV) maker said in a statement today that six months after the issuance date, the conversion price of the bonds will be $3.07 per American depositary share. The notes will bear zero interest and expire on Feb. 4, 2021.  

In addition, the holders have the option to convert a portion or all of the notes into Class A ordinary shares. 

The news today follows the first set of bonds it announced last week, in which Nio said it would issue them to two separate Asian-based investment funds. Altogether, Nio would sell $200 million worth of convertible notes in private placements.

Despite the announcement, shares of Nio were down 2% at $3.94 per ADS in early trading on Friday. That's likely due to investors causing concern over Nio announcing poor sales for January earlier this week. In that month, the company delivered 1,598 cars, which represented a 12% year-over-year decrease. 

After seeing some market appreciation following the principal agreement of the trade deal in December, Nio's stock has fallen recently. This week, Nio fell to a low of $3.62 per ADS and has traded at a high of just $4.20 per ADS. Last month, Nio hit a high of $5.65 per ADS.

Currently, Nio has offices in San Jose, Shanghai, Beijing, Munich, London and six other locations. Looking ahead, Nio plans to focus its business in China, but hopes to expand into other markets as well, JoAnn Yamani, the company's director of communications told CapitalWatch last month.

Nio said it is still working on "several" financing projects; the results are still uncertain.