Summary by Futu AI
Alibaba Group Holding Limited announced on May 23, 2024, its intention to offer $4.5 billion in Convertible Senior Notes due 2031, with an option for initial purchasers to buy an additional $500 million. The private offering targets qualified institutional buyers and certain non-U.S. persons. The proceeds are earmarked for repurchasing American depositary shares (ADSs) under its existing share repurchase program, funding further share repurchases, and covering the costs of capped call transactions. These capped call transactions are expected to minimize dilution from the conversion of the Notes or offset cash payments above the principal amount, subject to a cap. The Notes, when issued, will be senior unsecured obligations of Alibaba Group, maturing on June 1, 2031, unless earlier actions necessitate a change. The interest rate...Show More