Li Auto announces repurchase rights for 0.25% convertibles due 2028

By Mary-Katherine Stinson

Lexington, Ky., March 27 – Li Auto Inc. announced repurchase rights for its 0.25% convertible senior notes due 2028 (Cusip: 50202MAB8), according to a press release.

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

The repurchase right begins on March 27. It expires at 5 p.m. ET on April 29, which is also the withdrawal deadline.

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

However, as May 1 is an interest payment date, accrued interest will be paid on that date to holders of record on April 15, regardless of the exercise of the repurchase right, leaving no accrued interest on the 2028 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, Deutsche Bank Trust Co. Americas.

As of May 5, there was $862.5 million in total principal of the 2028 notes outstanding. If all outstanding 2028 notes are surrendered for repurchase, the aggregate cash repurchase price will be $862.5 million.

Li Auto is a Beijing-based electric vehicle manufacturer.

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