BEIJING (dpa-AFX) - Alibaba Group Holding Limited (BABA) Thursday said it has priced its nearly $3.2 billion of Zero Coupon Convertible Senior Notes due 2032.
The company expects to use 80% of the proceeds form the offering for advancement of its cloud infrastructure, and 20% for expanding international commerce operations.
The initial conversion rate for the Notes will be 5.1773 ADSs per $1,000 of the Notes, which is equivalent to an initial conversion price of $193.15 per ADS. The initial conversion price represents a premium of 31.25% over the Reference Share Price of $147.16 per ADS.
Additionally, Alibaba has entered into capped call transactions with one or more of the initial purchasers and/or their affiliates and/or other financial institutions. The cap price will initially be $235.46 per ADS, a 60% premium to the closing price of the company's shares on the Hong Kong Stock Exchange on the date of pricing. The cost of the capped call options was approximately $183.74 million.
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