Hello announces repurchase rights for 1.25% convertibles due 2025

By Mary-Katherine Stinson

Lexington, Ky., May 5 – Hello Group Inc. announced repurchase rights for its 1.25% convertible senior notes due 2025 (Cusip: 60879BAB3), according to a press release.

Each holder has the right to require the company to repurchase for cash on July 1 all or any portion of their notes in integral multiples of $1,000 principal amount.

The repurchase right begins at 9 a.m. ET on May 30. It expires at 5 p.m. ET on June 29, which is also the withdrawal deadline.

Notes will be repurchased at par plus any accrued interest to the repurchase date.

However, as July 1 is an interest payment date, accrued interest will be paid on that date to holders of record on June 15, regardless of the exercise of the repurchase right, leaving no accrued interest on the 2025 notes on the repurchase date.

In order to exercise their repurchase right, holders must follow the procedures set forth in the repurchase rights notice. Holders may request the notice from the trustee and paying agent, Bank of New York Mellon.

As of May 5, there was $336,884,000 in total principal of the 2025 notes outstanding. If all outstanding 2025 notes are surrendered for repurchase, the aggregate cash repurchase price will be $336,884,000.

The issuer is a Beijing-based mobile social networking platform in China. The notes originally listed Momo Inc. as the issuer.

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