Bilibili talks $1.4 billion five-year convertible notes to yield 0%-0.5%, up 40%-45%

By Abigail W. Adams

Portland, Me., Nov. 18 – Bilibili Inc. plans to price $1.4 billion of five-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 40% to 45%, according to a market source.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $200 million.

The notes are non-callable until Dec. 1, 2024 and then subject to a 130% hurdle.

They are putable on Dec. 1, 2024 or upon a fundamental change.

The notes will be settled in cash, American Depositary Shares, or a combination of both at the company’s option.

Holders may elect to receive class Z ordinary shares in lieu of the company’s ADSs.

Concurrently, the company is entering into privately negotiated transactions with holders of its 1.375% convertible notes due 2026 to exchange the notes for shares.

Proceeds will be used to enrich content, for research and development, for general corporate purposes and to finance or refinance eligible projects under its sustainable finance framework.

Bilibili is a Shanghai-based video sharing website.

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