Alibaba Group Holding Limited announced the pricing of a private offering of US$4,500 million in 0.50% Convertible Senior Notes due 2031 on May 23, 2024. The offering, which is expected to close on May 29, 2024, includes an option for initial purchasers to buy an additional US$500 million in Notes. The net proceeds, estimated at approximately US$4,436 million (or US$4,930 million if the additional Notes are purchased), will be used for a concurrent repurchase of Alibaba's American depositary shares (ADSs) under its existing share repurchase program, future share repurchases, and to fund the cost of entering into capped call transactions. The Notes will be senior unsecured obligations, maturing on June 1, 2031, with interest payable semi-annually. Alibaba has also entered into capped call transactions to potentially...Show More

Alibaba Group Holding Limited announced the pricing of a private offering of US$4,500 million in 0.50% Convertible Senior Notes due 2031 on May 23, 2024. The offering, which is expected to close on May 29, 2024, includes an option for initial purchasers to buy an additional US$500 million in Notes. The net proceeds, estimated at approximately US$4,436 million (or US$4,930 million if the additional Notes are purchased), will be used for a concurrent repurchase of Alibaba's American depositary shares (ADSs) under its existing share repurchase program, future share repurchases, and to fund the cost of entering into capped call transactions. The Notes will be senior unsecured obligations, maturing on June 1, 2031, with interest payable semi-annually. Alibaba has also entered into capped call transactions to potentially reduce dilution upon conversion of the Notes or offset cash payments required, subject to a cap. The initial conversion rate is set at 9.5202 ADSs per US$1,000 principal amount, representing a 30% premium over the last reported sale price of Alibaba's ADSs on the NYSE. The Notes, the ADSs, and the ordinary shares have not been registered under the Securities Act and are being offered to qualified institutional buyers and certain non-U.S. persons in offshore transactions. The completion of the Notes Offering and the share repurchase program is not guaranteed.