U.S. Markets open in 8 hrs 42 mins
  • S&P Futures

    4,073.25
    -11.50 (-0.28%)
     
  • Dow Futures

    32,519.00
    -62.00 (-0.19%)
     
  • Nasdaq Futures

    12,501.00
    -59.25 (-0.47%)
     
  • Russell 2000 Futures

    1,831.10
    -6.10 (-0.33%)
     
  • Crude Oil

    113.16
    +0.76 (+0.68%)
     
  • Gold

    1,806.90
    -12.00 (-0.66%)
     
  • Silver

    21.53
    -0.21 (-0.95%)
     
  • EUR/USD

    1.0537
    -0.0018 (-0.1686%)
     
  • 10-Yr Bond

    2.9680
    -2.9680 (-100.00%)
     
  • Vix

    26.10
    -27.47 (-100.00%)
     
  • GBP/USD

    1.2468
    -0.0024 (-0.1945%)
     
  • USD/JPY

    129.0330
    -0.3250 (-0.2512%)
     
  • BTC-USD

    29,841.74
    -483.62 (-1.59%)
     
  • CMC Crypto 200

    671.04
    +428.36 (+176.51%)
     
  • FTSE 100

    7,518.35
    +53.55 (+0.72%)
     
  • Nikkei 225

    26,832.76
    +173.01 (+0.65%)
     

NIO Declares Repurchase Right for Convertible Senior Notes

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

NIO Inc. NIO recently notified holders of its 4.50% Convertible Senior Notes due 2024 that by virtue of the Indenture dated as of Feb 4, 2019, relating to the Notes between the company and The Bank of New York Mellon, as trustee, each holder has the right to require the company to repurchase all of such holder’s Notes or any portion thereof that is an integral multiple of $ 1,000 principal amount for cash on Feb 1, 2022.

Per the rules of the United States Securities and Exchange Commission (SEC), NIO will file a Tender Offer Statement on Schedule TO.

According to NIO, the documents specifying the terms for exercising the Repurchase Right will be available through the Depository Trust Company and the paying agent, The Bank of New York Mellon.

The company also stated that as of Dec 30, 2021,the aggregate principal amount of the Notes outstanding was $165,291,000. If all outstanding Notes are surrendered for repurchase through the exercise of the Repurchase Right, the aggregate cash purchase price will be $165,291,000.

The opportunity for Notes holders to exercise the Repurchase Right commenced at 9:00 a.m. on Jan 3, 2022, and will expire at 5:00 p.m., New York City (NYC) time, on Jan 28, 2022.

For exercising the Repurchase Right, a holder must adhere to the transmittal procedures given in the company’s Repurchase Right Notice to holders. Additionally, holders have the option to withdraw any previously tendered Notes at any time prior to 5:00 p.m., NYC time, Jan 28, 2022.

Shanghai-headquartered NIO is a pioneer in China’s electric vehicle (EV) market and seems to be well poised to cement a strong foothold in the rapidly growing EV industry. The rising demand for its ES6, ES8 and EC6 models is enhancing the firm’s top line. This year, the firm intends to deliver three new products based on the NIO Technology Platform 2.0, including the ET7 model. Deliveries of ET7 are scheduled to commence in first-quarter 2022. Also, NIO’s battery swap technology is a game-changer and lends it an edge over its peers.

Zacks Rank & Key Picks

NIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the auto space include Fox Factory Holdings FOXF, Genuine Parts GPC and LKQ Corporation LKQ, all of which carry a Zacks Rank of 2 (Buy)currently.

Fox Factory has an expected earnings growth rate of 23.33% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 2 cents in the past 60 days.

Fox Factory’s earnings beat the Zacks Consensus Estimate in the last four quarters. FOXF has a trailing four-quarter earnings surprise of 15.85%, on average. FOXF has surged 52% in the past year.

Genuine Parts has an expected earnings growth rate of 10.53% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised upward by 4 cents in the past 60 days.

Genuine Parts’ earnings beat the Zacks Consensus Estimate in the last four quarters. GPC has a trailing four-quarter earnings surprise of 15.97%, on average. GPC has surged 38.8% in the past year.

LKQ Corp has an expected earnings growth rate of 18.84% for fourth-quarter 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 4 cents in the last 60 days.

LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters. LKQ has a trailing four-quarter earnings surprise of 34.37%, on average. LKQ has rallied 66.5% in the past year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Genuine Parts Company (GPC) : Free Stock Analysis Report
 
LKQ Corporation (LKQ) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
NIO Inc. (NIO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research