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Nio Secures Additional $100M In Debt Financing

Chinese electric vehicle manufacturer Nio Inc – ADR (NYSE: NIO) announced a $100-million private placement debt offering Friday that comes close on the heels of $100 million in financing that it announced earlier this month.

The Terms Of Nio's Financing Deal

Nio said it has entered into definitive agreement with two unaffiliated Asia-based investment funds with respect to the sale of convertible notes for an aggregate principal amount of $100 million through a private placement.

The company said it expects the placements to close on or before Feb. 19 contingent upon the satisfaction of customary closing conditions.

The deal takes Nio's total financing year-to-date to $200 million, according to Nio.

The notes bear zero interest and will mature Feb. 4, 2021, the automaker said.

Ahead of the maturity period, the holder has the right to convert all or part of the principal amount into Class A ADSs, either six months after the issuance date at $3.07 per ADS or upon the completion of an equity offering by the company at a conversion price derived from the pricing of the offering.

Nio Says It Has More Financing In The Offing

Nio said in Friday's press release that it is working on several financing projects for which the outcome is uncertain at this time.

On Thursday, it was reported that Nio told employees that paychecks would arrive Feb. 14 instead of Feb. 8 as scheduled as the company grapples with the country's COVID-19 virus outbreak.

William Li, Nio's chairman and CEO, also suggested that employees opt for restricted stock units in lieu of upcoming bonuses.

The outbreak of the new coronavirus led to a year-over-year decline in Nio's January deliveries. The company also warned of further declines in production and deliveries in February.

Nio shares were down 5.46% at $3.81 at the time of publication Friday.

Related Links:

4 Reasons Nio Shares Are Higher Despite Sales Warning

Nio Shares Trade Higher After Chinese Official Says EV Subsidy Will Be Maintained

Photo courtesy of Nio.

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