Chinese e-commerce service company Baozun announced Friday the pricing of its proposed offering of up to 225 million U.S. dollars in aggregate principal amount of convertible senior notes due 2024.
The company granted the initial purchasers in the notes offering a 30-day option to purchase up to an additional 50 million dollars in principal amount of the notes, according to its statement.
Net proceeds from the notes offering, estimated at 219.8 million dollars or 269 million dollars if the initial purchasers exercise their option to purchase additional notes in full, will be used for working capital and other general corporate purposes, including repayment of outstanding indebtedness and potential future acquisitions, said the company.
The notes will be convertible at the option of the holders into the company's American Depositary Shares (ADSs), each currently representing three Class A ordinary shares of the company, based on an initial conversion rate of 19.2308 ADSs per 1,000 dollars principal amount of notes.
The notes will bear interest at a rate of 1.625 percent per year, payable on May 1 and Nov. 1 of each year, beginning on Nov. 1, 2019, according to the statement.
They will mature on May 1, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date.
Founded in 2006, the Shanghai-based company is an e-commerce solutions provider that helps brands execute their e-commerce strategies in China.
Baozun was listed on Nasdaq in May 2015 under the symbol "BZUN." Shares of the company rose 2.3 percent shortly after Friday's opening, following a decline of 7.2 percent in the previous session. Enditem
