Alibaba Announces Pricing Of Offering Of $4.50 Bln Of 0.50% Convertible Senior Notes Due 2031

(RTTNews) - Alibaba Group Holding Limited (BABA) announced the pricing of its private offering of US$4.500 billion aggregate principal amount of 0.50% Convertible Senior Notes due 2031.

The company also granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$500 million aggregate principal amount of the Notes, exercisable for settlement within a 13-day period, beginning on, and including, the first date on which the Notes are issued.

The Notes Offering is expected to close on May 29, 2024.

Alibaba Group estimates that the net proceeds from the Notes Offering will be about US$4.436 billion or US$4.930 billion if the initial purchasers' option is exercised in full.

Alibaba Group intends to use the net proceeds from the Notes Offering to repurchase approximately 14.8 million of its American depositary shares; fund further share repurchases; and fund the US$573.75 million cost of entering into the capped call transactions.

The Notes will mature on June 1, 2031, unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date. The Notes will bear interest at a rate of 0.50% per year, payable in arrears on June 1 and December 1, of each year, beginning on December 1, 2024.