首页 News 正文

Alibaba issues $4.5 billion worth of convertible bonds! There are still about 29 billion repurchase funds left

楚一帆
221 0 0

Alibaba Group released a pricing announcement today regarding the issuance of convertible priority notes, stating that it will issue $4.5 billion convertible priority notes due in 2031 with an interest rate of 0.5%.
The terms indicate that these bills will have a conversion premium of 30% to 35%. Citigroup, JPMorgan Chase, Morgan Stanley, Barclays, and HSBC are assisting in arranging this transaction.
According to its announcement, Alibaba is expected to grant initial buyers additional options, with a maximum principal amount of up to $500 million, and the relevant options can be exercised within 13 days from the date of issuance of the notes. This means that this transaction can raise up to $5 billion in funds.
It is reported that the net proceeds raised will mainly be used for three purposes: repurchasing approximately 14.8 million American depositary shares at a price of $80.80 per share (the final transaction price per American depositary share on May 23); Provide funds for further repurchases under the share repurchase plan; Provide funding of $573.75 million to establish a price limit bullish exchange.
As for the repurchase, Alibaba is expected to repurchase the expected initial hedging value of the entire transaction, which is expected to facilitate investors interested in hedging the notes for initial hedging. The relevant price is the closing price of the US stock on May 23, 2024.
"The synchronous repurchase and future repurchase under the share repurchase plan will be paid with funds raised from the issuance of notes or other cash, and overall, it is expected to offset the potential dilution of shares when the notes are converted." Alibaba stated in the announcement.
It is worth mentioning that during the Alibaba Q1 2024 performance conference call, Alibaba's management stated that there is currently approximately $29 billion on Alibaba's books available for future share repurchases.
As management, when considering future shareholder return plans and arrangements, we will definitely pay attention to the company's future cash flow situation. At the same time, we also need to consider the investment needs in core businesses, as well as in new areas such as AI Investment in AIDC cross-border business. On this basis, if we have additional resources, we are willing to continue with shareholder returns. When conducting shareholder returns, we consider stock repurchases and dividend payouts as two separate ways of shareholder returns, rather than considering them separately The management of Alibaba mentioned above will discuss its performance in the first quarter of 2024.
Additionally, it is worth noting that& quot; Limit price bullish trading; quot; This clause has caught the attention of the market, and according to the announcement, the upper limit price of this transaction is expected to be 100% higher than the final transaction price of the American Depositary Shares on the day of the bill issuance pricing. In other words, Alibaba will purchase approximately 100% call options on its own stocks.
Huang Lichong, President of Huisheng International Capital, told Caixin that convertible bonds generally have lower interest rates and are actually using leverage to boost stocks.
In Huang Lichong's view, overall, the current situation of Chinese concept stocks in the US market is not good, so Alibaba must find ways to reduce the circulating stocks in the US market.
Some market analysts also pointed out that Alibaba has sufficient cash and issuing convertible bonds is a clever way to develop itself. They also pointed out that global leading technology companies such as Apple and Amazon are doing this: as of the end of 2023, Alibaba's overall asset liability ratio was 37.3%, far lower than Amazon's 61.8% and Apple's 79% during the same period. "This is beneficial for shareholders and also means that Alibaba is optimistic about its own development prospects and full of confidence in value enhancement."
As of press release, Alibaba's US stock market closed at $80.80, with a total market value of $196.6 billion.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   苹果知名分析师郭明錤周四(10月31日)在社交媒体上发文表示,苹果明年可能会减少对芯片制造商博通Wi-Fi芯片的依赖,并推出自己的处理器。   郭明錤在社交媒体平台X上写道,“在2025年下半年的新产品(例如iPh ...
    uturn
    昨天 14:42
    支持
    反对
    回复
    收藏
  •   10月30日,小鹏汽车生态企业小鹏汇天宣布,旗下分体式飞行汽车“陆地航母”即将亮相2024中国航展,11月12日将在中国航展第二展区(斗门莲洲)进行全球首次公开飞行,同时“陆地航母”也将在珠海国际航展中心8号 ...
    yxtianyouyou
    前天 11:43
    支持
    反对
    回复
    收藏
  •   交易所监管文件显示,当地时间11月1日,亚马逊创始人杰夫·贝索斯拟出售约1635万股亚马逊股票,预计套现约30.5亿美元。今年7月,贝索斯已申请额外出售约2500万股亚马逊股票,按当时股价计算可套现约50亿美元。 ...
    blueskybb
    13 小时前
    支持
    反对
    回复
    收藏
  •   近日,凯撒海湾目的地(山东)运营管理有限责任公司(简称“凯撒海湾”)与携程旅悦集团签署战略合作协议,双方将围绕“海上目的地运营”、“旅游产品与服务创新”、“研学旅行”、“日韩及海外旅游市场开拓”等 ...
    llyyy2008
    11 小时前
    支持
    反对
    回复
    收藏
楚一帆 注册会员
  • 粉丝

    0

  • 关注

    0

  • 主题

    38