Bilibili Inc. Announces Completion of the Repurchase Right Offer for Its 0.50% Convertible Senior Notes due 2026

Rhea-AI Summary

Bilibili has completed its repurchase right offer for its 0.50% Convertible Senior Notes due 2026. Notes worth US$419,107,000 in aggregate principal amount were validly surrendered before the offer's expiration on November 27, 2024. The company has accepted all surrendered Notes for repurchase at an aggregate cash purchase price of US$419,107,000 and has forwarded the payment to Deutsche Bank Trust Company Americas, the paying agent, for distribution to applicable holders.

Positive

• None.

Negative

• Cash outflow of US$419.1M for note repurchases, impacting company's liquidity
• Significant debt repayment obligation met through cash reserves

Insights

Financial Analyst

The completion of Bilibili's repurchase of $419.1 million in convertible notes represents a significant deleveraging event. This move strengthens the company's balance sheet by reducing future debt obligations and potential dilution risk. The original 0.50% interest rate was notably low, suggesting the repurchase was likely motivated by market conditions rather than interest expense concerns.

The transaction demonstrates robust cash management and financial flexibility, though it will reduce the company's cash reserves. Given Bilibili's current market cap of $7.8 billion, this repurchase represents about 5.4% of the company's market value. The successful completion indicates investor confidence in receiving full face value for their notes, while allowing Bilibili to potentially reissue debt at more favorable terms in the future if needed.

SHANGHAI, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced that it has completed its previously announced repurchase right offer relating to its 0.50% Convertible Senior Notes due 2026 (CUSIP No. 090040AF3) (the “Notes”). The repurchase right offer expired at 5:00 p.m., New York City time, on Wednesday, November 27, 2024. Based on information from Deutsche Bank Trust Company Americas as the paying agent for the Notes, US$419,107,000 aggregate principal amount of the Notes were validly surrendered and not withdrawn prior to the expiration of the repurchase right offer. The aggregate cash purchase price of these Notes is US$419,107,000. The Company has accepted all of the surrendered Notes for repurchase and has forwarded cash in payment of the same to the paying agent for distribution to the applicable holders.

Materials filed with the SEC will be available electronically without charge at the SEC’s website, http://www.sec.gov. Documents filed with the SEC may also be obtained without charge at the Company’s investor relations website, http://ir.bilibili.com.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

For investor and media inquiries, please contact:

In China
Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

FAQ

What is the total amount of Bilibili (BILI) convertible notes repurchased in November 2024?

Bilibili repurchased US$419,107,000 in aggregate principal amount of its 0.50% Convertible Senior Notes due 2026.

When did Bilibili's (BILI) 2026 convertible notes repurchase offer expire?

The repurchase right offer expired at 5:00 p.m., New York City time, on Wednesday, November 27, 2024.

What was the interest rate on Bilibili's (BILI) convertible notes due 2026?

The convertible senior notes carried an interest rate of 0.50% and were due in 2026.