NIO Announces Repurchase Opportunity For Convertible Senior Notes Due 2027; Firefly App Gains Traction In China

NIO Inc. NIO on Thursday announced that holders of its 0.50% Convertible Senior Notes due 2027 have the right to require the company to repurchase their Notes, or any portion thereof, on February 1, 2025.

As of December 25, there was $378.525 million in aggregate principal amount of the Notes outstanding. If all Notes are repurchased, the total cash payment would amount to $378.525 million.

The Repurchase Right is available from 9:00 a.m. on December 30, 2024, until 5:00 p.m. on January 30, 2025.

The repurchase price will be equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest up to, but excluding, the Repurchase Date.

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As February 1, 2025, falls on a Saturday, the repurchase will occur on the next business day, February 3, 2025

The company will file a Tender Offer Statement with the SEC, and the terms and conditions for exercising the Repurchase Right will be made available through the Depository Trust Company and the paying agent, The Deutsche Bank Trust Company Americas.

According to Benzinga Pro, NIO stock has lost over 51% in the past year. Investors can gain exposure to the stock via KraneShares Electric Vehicles and Future Mobility Index ETF KARS.

In other news, NIO's sub-brand Firefly is generating significant attention in China. The Firefly mobile app reached over 100,000 user registrations within 72 hours of launching, marking a strong start. However, the user base predominantly consists of individuals who are not part of NIO or its other sub-brand Onvo, suggesting that Firefly is expanding its appeal beyond existing NIO customers, reports CnEV Post. This growth could help the company broaden its customer base in the future.

Price Action: NIO shares are trading higher by 0.22% premarket at $4.64 last check Thursday.

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