- Bilibili Inc. (BILI, Financial) completes a $690 million convertible senior notes offering due 2030.
- The notes offer a low annual interest rate of 0.625%, highlighting favorable financial terms.
- Bilibili repurchased 5.59 million shares for HK$782.9 million, showing confidence in future growth.
Bilibili Inc. (BILI), a leading video community for young generations in China, has successfully concluded a $690 million convertible senior notes offering, which includes the full exercise of a $90 million overallotment option. This indicates strong demand from investors. The notes, which mature in 2030, carry an annual interest rate of just 0.625%, offering a cost-effective financing option for the company.
The initial conversion rate is set at 42.1747 Class Z ordinary shares per $1,000 principal, equating to a conversion price of approximately HK$185.63 per share, a 27.1% premium over the recent share price. This conversion premium provides a buffer against immediate dilution for existing shareholders.
In conjunction with the notes offering, Bilibili completed a simultaneous offering of 10,281,240 borrowed Class Z shares at HK$140.10 each, facilitating hedging transactions by investors employing a convertible arbitrage strategy. Importantly, the company executed a concurrent repurchase of 5,588,140 Class Z shares for approximately HK$782.9 million, reinforcing management's confidence in the company's future valuation.
The capital raised will be allocated towards enhancing Bilibili's content ecosystem, driving user growth, boosting monetization efficiency, funding future share repurchases, and supporting general corporate purposes.
