Business
NIO slides after convertible note offering rattles investors
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NIO (NYSE:NIO) dropped sharply on Tuesday after the electric vehicle maker announced a proposed offering of $1B in convertible bonds.
The Shanghai-based company said it would sell $500M in aggregate principal amount of convertible senior notes due in 2029 and $500M in aggregate principal amount of convertible senior notes due in 2030. The conversion price will be close to or a little higher than NIO’s (NIO) current stock price.
The $1B offering represents about 5.4% of the current market cap on NIO (NIO). The EV stock trades with a short interest position outstanding on it of about 7.4% of the total float. Shares fell 12.56% in late morning trading on Tuesday to $9.02 vs. the 52-week trading range of $7.00 to $20.95.
In product news for NIO (NIO), reports indicate that the company’s ES6 model is off to a strong start in China and the automaker is noted to have nabbed some market share from BMW (OTCPK:BMWYY) in particular.
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