Alibaba Group Holding Limited (NYSE: BABA) today announced the completion of its private offering of HK$12.023 billion aggregate principal amount of Zero Coupon Exchangeable Bonds due 2032 by reference to the ordinary shares of Alibaba Health Information Technology Limited that are listed on The Stock Exchange of Hong Kong Limited. The Bonds were sold to certain non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933, as amended.
The Bonds are unsecured and unsubordinated obligations of Alibaba Group. The Bonds do not bear regular interest. The Bonds will mature on July 9, 2032, unless redeemed, exchanged or purchased in accordance with their terms prior to such date.
“Holders of the Bonds,” to quote Wednesday’s news release, “may exchange all or any portion of the Bonds at their option at any time on or after the 41st day following the issue date of the Bonds to, and including, the close of business on the fifth scheduled trading day immediately preceding the maturity date of the Bonds.
“Upon exchange, the Company may, at its option, elect to satisfy its exchange obligation by delivering AH Shares, cash, or a combination of cash and AH Shares, each in accordance with the terms set forth in the Bonds.”
BABA shares lost $3.88, or 3.6%, to $104.17.
