Nio Stock Is Sliding Tuesday: What's Going On?

NIO Inc NIO shares are moving lower Tuesday after the company announced a proposed offering.

What Happened: After the close on Monday, Nio proposed an offering of $500 million in convertible senior notes due 2029 and $500 million in convertible senior notes due 2030. 

The company said it intends to grant the initial purchasers an option to purchase up to an additional $75 million of the 2029 notes and up to an additional $75 million of the 2030 notes. Holders may convert the notes at any time prior to the close of business on the second trading day preceding the maturity dates.

Nio plans to use some of the proceeds to repurchase existing debt securities. The remainder will mainly be used to further strengthen the company's balance sheet, as well as for general corporate purposes. 

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NIO Price Action: Nio shares were down 5.43% at $9.75 at the time of publication, according to Benzinga Pro. The stock is now down nearly 50% over a one-year period.

Photo: courtesy of Nio.