Li Auto to issue up to $750 million in convertible notes, shares fall 4% after hours

April 06, 2021 CV TECH INC

Chinese electric car maker Li Auto announced plans Monday to issue up to $750 million in convertible senior notes due 2028 , its first capital markets financing so far this year.


The initial conversion rate, interest rate, and other terms of the notes have not been finalized and will be determined at the time of pricing of the offering, according to an announcement.


The company intends to grant the initial purchasers in the offering a 13-day option to purchase up to an additional $112.5 million aggregate principal amount of the notes, Li Auto said.


The notes will mature on May 1, 2028, and holders may convert any or all of their notes at their option at any time on or after November 1, 2027.


Li Auto said it plans to use the net proceeds from the offering for (i) research and development of new vehicle models, including BEV models, (ii) research and development of leading technologies, and (iii) working capital and other general corporate purposes.


After the announcement, Li Auto’s ADR was down about 6 percent in after-hours trading, before narrowing to 4 percent at press time.


Li Auto to issue up to $750 million in convertible notes, shares fall 4% after hours-CnEVPost


Li Auto to issue up to $750 million in convertible notes, shares fall 4% after hours-CnEVPost


In December, Li Auto offered an additional 47 million ADSs.


Li Auto said the funds will be used to develop next-generation electric vehicle technologies, including high-voltage platforms, batteries, and fast charging technologies, as well as next-generation BEV platforms and future vehicle models.


In addition, the funds will be used for automated driving technologies and solutions, as well as for general corporate purposes, the company said at the time.



Li Auto files for additional 47 million ADSs, putting further pressure on stock price