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LI - Li Auto Inc. News Story

$18.26 0.3  1.5%

Last Trade - 07/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £23.65bn
Enterprise Value £20.57bn
Revenue £1.05bn
Position in Universe 399th / 6858

Li Auto Inc. Prices Offering of US$750 Million Convertible Senior Notes

Thu 8th April, 2021 11:26am
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BEIJING, China, April 08, 2021 (GLOBE NEWSWIRE) -- Li Auto Inc. (Nasdaq: LI)
(“Li Auto” or the “Company”), an innovator in China’s new energy
vehicle market, today announced the pricing of US$750 million in aggregate
principal amount of convertible senior notes due 2028 (the “Notes”) (the
“Notes Offering”). The Notes have been offered to persons reasonably
believed to be qualified institutional buyers in reliance on the exemption
from the registration requirement provided by Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”), and certain non-U.S.
persons in offshore transactions in reliance on Regulation S under the
Securities Act. In addition, the Company has granted the initial purchasers in
the Notes Offering a 13-day option to purchase up to an additional US$112.5
million aggregate principal amount of the Notes.

When issued, the Notes will be senior unsecured obligations of the Company.
The Notes will bear interest at a rate of 0.25% per year, payable semiannually
in arrears on May 1 and November 1 of each year, beginning on November 1,
2021. The Notes will mature on May 1, 2028, unless repurchased, redeemed, or
converted in accordance with their terms prior to such date. Prior to the
close of business on the business day immediately preceding November 1, 2027,
the Notes will be convertible at the option of the holders only upon
satisfaction of certain conditions and during certain periods. Holders may
convert any or all of their Notes at their option at any time on or after
November 1, 2027, until the close of business on the second scheduled trading
day immediately preceding the maturity date. Upon conversion, the Company will
pay or deliver to such converting holders, as the case may be, cash, the
Company’s American depositary shares (“ADSs”), each currently
representing two Class A ordinary shares of the Company, or a combination of
cash and ADSs, at the Company’s election.

The initial conversion rate of the Notes is 35.2818 ADSs per US$1,000
principal amount of such Notes (which is equivalent to an initial conversion
price of approximately US$28.34 per ADS and represents a conversion premium of
approximately 27.5% above the closing price of the Company’s ADSs on April
7, 2021, which was US$22.23 per ADS). The conversion rate for the Notes is
subject to adjustment upon the occurrence of certain events.

Holders of the Notes may require the Company to repurchase all or part of
their Notes for cash on May 1, 2024 and on May 1, 2026, in each case, at a
repurchase price equal to 100% of the principal amount of the Notes to be
repurchased, plus accrued and unpaid interest to, but excluding, the relevant
repurchase date. In addition, if the Company undergoes a fundamental change,
holders may require the Company to repurchase for cash all or part of their
Notes at a repurchase price equal to 100% of the principal amount of the Notes
to be repurchased, plus accrued and unpaid interest to, but excluding, the
fundamental change repurchase date. In addition, the Company may redeem all
but not part of the Notes in the event of certain changes in the tax laws, at
a redemption price equal to 100% of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest, if any, to, but excluding, the tax
redemption date, including any additional amounts with respect to such
redemption price.

The Company estimates that the net proceeds from the Notes Offering will be
approximately US$733.9 million (or approximately US$844.2 million if the
initial purchasers in the Notes Offering exercise their option to purchase
additional Notes in full), after deducting the initial purchasers’ discounts
and estimated offering expenses payable by the Company. The Company plans to
use the net proceeds from the Notes Offering for (i) research and development
of new vehicle models, including BEV models, (ii) research and development of
leading technologies, and (iii) working capital and other general corporate
purposes.

The Notes, the ADSs deliverable upon conversion of the Notes, if any, and the
Class A ordinary shares represented thereby have not been and will not be
registered under the Securities Act or any state securities laws. They may not
be offered or sold within the United States or to U.S. persons, except to
persons reasonably believed to be qualified institutional buyers in reliance
on the exemption from registration provided by Rule 144A under the Securities
Act and to certain non-U.S. persons in offshore transactions in reliance on
Regulation S under the Securities Act.

The Company expects to close the Notes Offering on or about April 12, 2021,
subject to the satisfaction of customary closing conditions.

This press release shall not constitute an offer to sell or a solicitation of
an offer to purchase any of these securities, nor shall there be a sale of the
securities in any state or jurisdiction in which such an offer, solicitation,
or sale would be unlawful.

This press release contains information about the pending Notes Offering, and
there can be no assurance that the Notes Offering will be completed.

About Li Auto Inc.

Li Auto Inc. is an innovator in China’s new energy vehicle market. The
Company designs, develops, manufactures, and sells premium smart electric
vehicles. Through innovations in product, technology, and business model, the
Company provides families with safe, convenient, and refined products and
services. Li Auto is a pioneer to successfully commercialize extended-range
electric vehicles in China. Its first model, Li ONE, is a six-seat, large
premium electric SUV equipped with a range extension system and cutting-edge
smart vehicle solutions. The Company started volume production of Li ONE in
November 2019 and delivered over 33,500 Li ONEs as of December 31, 2020. The
Company leverages technology to create value for its users. It concentrates
its in-house development efforts on its proprietary range extension system,
next-generation electric vehicle technology, and smart vehicle solutions.
Beyond Li ONE, the Company aims to expand its product line by developing new
vehicles, including BEVs and EREVs, to target a broader consumer base.

Safe Harbor Statement

This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor” provisions
of the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “aims,” “future,”
“intends,” “plans,” “believes,” “estimates,” “likely to,”
and similar statements. Li Auto may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission (the “SEC”), in its annual report to shareholders, in press
releases and other written materials, and in oral statements made by its
officers, directors, or employees to third parties. Statements that are not
historical facts, including statements about Li Auto’s beliefs, plans, and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following: Li
Auto’s strategies, future business development, and financial condition and
results of operations; Li Auto’s limited operating history; risks associated
with extended-range electric vehicles, Li Auto’s ability to develop,
manufacture, and deliver vehicles of high quality and appeal to customers; Li
Auto’s ability to generate positive cash flow and profits; product defects
or any other failure of vehicles to perform as expected; Li Auto’s ability
to compete successfully; Li Auto’s ability to build its brand and withstand
negative publicity; cancellation of orders for Li Auto’s vehicles; Li
Auto’s ability to develop new vehicles; and changes in consumer demand and
government incentives, subsidies, or other favorable government policies.
Further information regarding these and other risks is included in Li Auto’s
filings with the SEC. All information provided in this press release is as of
the date of this press release, and Li Auto does not undertake any obligation
to update any forward-looking statement, except as required under applicable
law.

For investor and media inquiries, please contact:

Li Auto Inc.
Investor Relations
Email: ir@lixiang.com

The Piacente Group, Inc.
Yang Song
Tel: +86 (10) 6508-0677
Email: Li@tpg-ir.com

Brandi Piacente
Tel: +1 (212) 481-2050
Email: Li@tpg-ir.com




GlobeNewswire, Inc. 2021
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