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NIO Announces Private Placement of US$100 Million Short-term Convertible Notes

From NIO| February 06 , 2020

NIO investment, NIO private placement

NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s premium electric vehicle market, announced on Feb. 06 that it has entered into definitive transaction documents with an unaffiliated Asia based investment fund (the "Purchaser"), pursuant to which NIO will issue and sell convertible notes in an aggregate principal amount of US$70 million to the Purchaser through a private placement. The convertible notes are to be issued pursuant to an indenture to be entered into on the closing date between the Company and The Bank of New York Mellon, London Branch, as trustee. The closing of this placement is subject to satisfaction of customary closing conditions and is expected to occur on or around February 10, 2020. In addition to the private placement to the Purchaser, the Company consummated another convertible notes private placement in January 2020 to another unaffiliated Asia based investment fund on similar terms. The combined aggregate principal amount of the convertible notes issued in the foregoing two placements is around US$100 million.

The notes to be issued to the Purchaser bear zero interest and mature on February 4, 2021. Prior to maturity, the holder of the notes has the right to convert the notes (a) after the six-month anniversary, into ADSs representing Class A ordinary shares of the Company at an initial conversion price of US$3.07 per ADS or (b) upon the completion of a bona fide issuance of equity securities of the Company for fundraising purposes, into ADSs representing Class A ordinary shares of the Company at the conversion price derived from such equity financing.

The Company is currently working on several other financing projects, the outcome of which is uncertain at this stage. The Company will announce any material developments or information subject to the requirements by applicable laws.

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