NIO Inc. Announces Completion of the Repurchase Right Offer for Its 0.50% Convertible Senior Notes due 2027

Rhea-AI Summary

NIO has completed its previously announced repurchase right offer for its 0.50% Convertible Senior Notes due 2027. The repurchase right offer expired on January 30, 2025, at 5:00 p.m., New York City time. According to The Deutsche Bank Trust Company Americas, the paying agent, US$378,312,000 aggregate principal amount of the Notes were validly surrendered and not withdrawn before the offer's expiration.

The Company has forwarded the Repurchase Price to the Paying Agent for distribution to the Holders who validly exercised their Repurchase Right. Following the repurchase settlement, only US$213,000 aggregate principal amount of the Notes will remain outstanding, continuing under the existing terms of the Indenture and the Notes.

Positive

• Significant debt reduction with US$378.3 million of convertible notes repurchased
• Lower future interest payment obligations due to reduced outstanding debt

Negative

• Substantial cash outflow of US$378.3 million for note repurchase

Insights

Fixed Income Analyst

NIO's successful completion of the convertible notes repurchase represents a significant deleveraging event, with $378.3 million worth of notes being retired from a total outstanding amount of $378.5 million. This strategic financial move yields several important implications:

Balance Sheet Impact: The repurchase substantially reduces NIO's convertible debt exposure, with only $213,000 remaining outstanding. This dramatic 99.9% reduction in convertible notes eliminates potential future dilution concerns and simplifies the company's capital structure. The 0.50% coupon rate, while attractive, suggests the repurchase was likely driven by noteholders exercising their put option rather than a voluntary company initiative.

Liquidity Considerations: The timing and scale of this cash outlay deserves scrutiny, particularly given the competitive pressures in the Chinese EV market and ongoing need for operational capital. While debt reduction is generally positive, the substantial cash deployment could impact NIO's flexibility for near-term investments in product development and market expansion.

Strategic Implications: This transaction effectively eliminates a significant portion of NIO's convertible debt, potentially providing greater financial maneuverability for future capital raising if needed. However, the high participation rate in the repurchase offer might indicate noteholders' concerns about the company's current market position and future prospects in the highly competitive EV sector.

SHANGHAI, Jan. 31, 2025 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced that it has completed its previously announced repurchase right offer relating to its 0.50% Convertible Senior Notes due 2027 (CUSIP No. 62914VAF3) (the “Notes”). The repurchase right offer expired at 5:00 p.m., New York City time, on Thursday, January 30, 2025. Based on information from The Deutsche Bank Trust Company Americas, as the paying agent for the Notes, US$378,312,000 aggregate principal amount of the Notes (the “Repurchase Price”) were validly surrendered and not withdrawn prior to the expiration of the repurchase right offer. The Company has forwarded cash in payment of the Repurchase Price to the Paying Agent for distribution to the Holders that had validly exercised their Repurchase Right. Following settlement of the repurchase, US$213,000 aggregate principal amount of the Notes will remain outstanding and continue to be subject to the existing terms of the Indenture and the Notes.

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 website, http://ir.nio.com.

About NIO Inc.

NIO Inc. is a pioneer and a leading company in the global smart electric vehicle market. Founded in November 2014, NIO aspires to shape a sustainable and brighter future with the mission of “Blue Sky Coming”. NIO envisions itself as a user enterprise where innovative technology meets experience excellence. NIO designs, develops, manufactures and sells smart electric vehicles, driving innovations in next-generation core technologies. NIO distinguishes itself through continuous technological breakthroughs and innovations, exceptional products and services, and a community for shared growth. NIO provides premium smart electric vehicles under the NIO brand, family-oriented smart electric vehicles through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand.

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

Investor Relations
ir@nio.com

Media Relations
global.press@nio.com

FAQ

How much of NIO's 2027 convertible notes were repurchased in January 2025?

NIO repurchased US$378,312,000 aggregate principal amount of its 0.50% Convertible Senior Notes due 2027.

What is the remaining amount of NIO's 2027 convertible notes after the repurchase?

After the repurchase settlement, US$213,000 aggregate principal amount of the Notes remain outstanding.

What was the interest rate on NIO's repurchased convertible notes?

The repurchased convertible notes had an interest rate of 0.50% and were due in 2027.

When did NIO's convertible note repurchase offer expire?

NIO's repurchase right offer expired at 5:00 p.m., New York City time, on Thursday, January 30, 2025.