Bilibili Inc. a leading video platform in China, has announced a $575 million offering of convertible senior notes due 2030, along with a concurrent offering of over 10.28 million Class Z ordinary shares to support hedging strategies used by bond investors.
The convertible notes, which are unsecured and will mature in 2030, are being offered to qualified institutional buyers under Rule 144A of the U.S. Securities Act.
Bilibili has also granted initial purchasers a 30-day option to purchase up to an additional $90 million in notes, which could raise total gross proceeds to $665 million if fully exercised.
Alongside the notes offering, the company is facilitating a concurrent delta share offering. In this, 10,281,240 Class Z ordinary shares are being offered at a price of HK$140.10 per share.
These shares are not newly issued but have been borrowed from third parties and are being sold by Goldman Sachs and Morgan Stanley. The proceeds from this sale will not go to Bilibili.
Instead, the offering is structured to help investors particularly those employing convertible arbitrage strategies hedge their positions in the convertible notes.
Bilibili stated that it plans to use part of the net proceeds from the notes offering to repurchase a portion of its Class Z ordinary shares in the market, which will then be cancelled. This move is seen as a vote of confidence in the company’s long-term value.
The company has filed the necessary documentation with the U.S. SEC, and both offerings are interdependent, subject to standard closing conditions.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
