Nio prices of $ 1.3 billion in convertible notes, half of which do not pay interest

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Nio Inc. NIO,
-1.05%
announced on Wednesday the price of convertible tickets of $ 1.3 billion, which included $ 650 million in banknotes due in 2026 and $ 650 million in banknotes due in 2027. The Chinese electric vehicle manufacturer said that unsecured banknotes in 2026 will not pay interest and the amount of the principal will not accrue. Nio’s shares fell 0.3% in premarket trading. The senior banknotes from 2027 will pay interest at a rate of 0.50% per year. Holders may convert the 2026 banknotes at any time on or after August 1, 2025, and the 2027 banknotes may be converted on or after August 1, 2026, into cash, US Shares (ADS) or a combination of cash and ADS. The initial conversion rate for ADS notes is the equivalent of $ 93.06 per ADS, which is 50% above Tuesday’s closing price of $ 62.04. Nio shares rose 187.0% in the last three months to Tuesday, while iShares MSCI China ETF MCHI,
+ 1.16%
gained 8.0% and the S&P 500 SPX,
+ 0.04%
advanced by 8.2%.

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