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Bilibili aims to raise USD 608 mln through convertible bond and follow-on share sale
CKN
2019/04/03 04:24:59
3,934
bilibili; video-streaming; convertible bonds; follow on share sale

Apr 03, 2019 (China Knowledge) - Video-streaming platform Bilibili has launched a convertible bond sale and a follow-on share offering that could raise up to USD 608 million as the company returns to the capital markets for more fundraising after going public in New York in March last year.

The company is looking to raise USD 300 million via a seven-year convertible bond sale and up to 17.1 million shares of which 10.55 million are primary shares with the remaining coming from existing shareholders.

Based on the company’s last closing price of USD 18.05 per share, the share sale could raise up to USD 308 million, bringing the potential fundraising to USD 608 million.

Bilibili’s convertible bond is currently marketed with a coupon range of between 1.375% to 1.875%, with a conversion premium at between 32.5% to 37.5%.

Convertible bonds are emerging as a popular financing tool for many tech companies in recent times due to their lower coupons in exchange for allowing the bondholder to convert their debt into shares at a set price in the future as traditional debt can be expensive for these companies, especially for unrated companies such as Bilibili.

Bilibili will be using the funds raised from the IPO to improve its content offerings, research and development as well as to fund strategic acquisitions and investments.

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