- Bilibili Inc. (BILI, Financial) announces a $600 million convertible senior notes offering due 2030 with an additional $90 million purchase option.
- The Concurrent Delta Offering involves 10,281,240 borrowed Class Z ordinary shares priced at HK$140.10 each.
- Bilibili will use part of the notes offering proceeds for a share repurchase, cancelling the repurchased shares.
Bilibili Inc. (NASDAQ: BILI, HKEX: 9626), a prominent video community for young audiences in China, has unveiled the pricing of two interrelated financial transactions. The company is conducting a $600 million convertible senior notes offering due in 2030. This offering presents initial purchasers with a 30-day option to buy an additional $90 million in principal amount.
Concurrently, Bilibili is executing a Delta Offering of 10,281,240 Class Z ordinary shares, borrowed from non-affiliate third parties, at a price of HK$140.10 per share. This strategy enables convertible arbitrage investors to hedge their investments without new shares being issued, as Bilibili will not derive proceeds from this offering.
Significantly, Bilibili plans to utilize a portion of the proceeds from the notes offering to repurchase shares, which will subsequently be cancelled. This decision reflects management's confidence in the company's valuation and long-term growth prospects, while also potentially benefiting existing shareholders by reducing the total share count.
This strategic move is designed to optimize Bilibili's capital structure, taking advantage of favorable market conditions while signaling positive outlook on the company's future performance.
