NIO Notifies Shareholders of Convertible Notes Option

Electric vehicle maker NIO, Inc. (NYSE: NIO) has notified shareholders of the repurchase rights on its 4.50% convertible senior notes due in 2024. As of December 30, 2021, the total principal amount of the notes outstanding stood at $165.29 million.

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Terms of the Indenture

Per the indenture dated February 4, 2019, each holder has the option to require the company to repurchase all of such holder’s notes or any portion in multiples of $1,000 principal amount on February 1, 2022.

According to NIO, the repurchase price for such notes will be equivalent to 100% of the principal amount of the notes to be repurchased, along with accrued and unpaid interest, if any. Since the repurchase date (February 1) is an interest payment date, the company will pay accrued and unpaid interest on notes through January 31, 2022, to all shareholders of record as of January 15, 2022.

The exercise period of the repurchase right commences on January 3, 2022, and will end on January 28, 2022.

Wall Street’s Take

Recently, Deutsche Bank analyst Edison Yu reiterated a Buy rating and a price target of $70 (120.96% upside potential) on the stock.

Consensus among analysts is a Strong Buy based on 7 Buys versus 1 Hold. The average NIO price target of $61.86 implies 95.27% upside potential from current levels. However, shares have lost 40.8% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into NIO’s performance this quarter.

According to the tool, the NIO website recorded a 48.75% decrease in global visits in November compared to the same period last year. Also, a quarter-to-date comparison shows a decrease of 26.81% compared to Q4 2020, while year-to-date website traffic growth stands at 103.58%.

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