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

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 and initial conversion rate will be determined at the time of pricing. In connection with the Notes offering, Alibaba Group plans to enter into capped call transactions with initial purchasers or their affiliates and other financial institutions, which may affect the market price of the ADSs and ordinary shares. The company also intends to conduct a Concurrent Repurchase of ADSs at the last reported sale price on the New York Stock Exchange on the date of the announcement. The securities involved in this offering have not been registered under the Securities Act or any state securities laws and will be offered only to qualified institutional buyers and certain non-U.S. persons. The completion of the Notes Offering and the share repurchase program is not guaranteed. Alibaba Group is a global commerce company with a mission to make it easy to do business anywhere, aiming to build the future infrastructure of commerce and last for 102 years.