What's Going On With Nio Stock?

NIO Inc NIO shares are trading higher Wednesday, bouncing back after tumbling earlier this week in the wake of a proposed offering.

What To Know: 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 priced the offering late Tuesday. The company said the 2029 notes will have an interest rate of 3.875% and the 2030 notes will bear interest at a rate of 4.625%.

The initial conversion rate is equivalent to a price of $11.12 per American depository share, which represents a conversion premium approximately 30% above Tuesday's close.

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Nio plans to use some of the proceeds to repurchase existing debt securities due in 2026 and 2027. The remainder will mainly be used to further strengthen the company's balance sheet, as well as for general corporate purposes. 

Nio said it expects to close the notes offering and the repurchase transactions on or about Sept. 22.

NIO Price Action: Nio shares are down about 7.5% year-to-date. The stock was up 5.01% at $8.99 at the time of publication, per Benzinga Pro.

Photo: courtesy of Nio.