Arduous road awaits refueled Chinese used-car app

Uxin

29/05/2019 03:53

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, May 29 (Reuters Breakingviews) - Uxin is issuing
$230 mln of convertible bonds, including to existing investors
TPG and Warburg Pincus. It follows a 70% loss in market value
since last year's IPO. A short attack, China’s slowdown and
generous terms make it hard to see the deal as accurately
calling a bottom. 
    Full view will be published shortly.
    On Twitter https://twitter.com/AlecMac11
    
    CONTEXT NEWS
    - Uxin, a Beijing-based online marketplace for used cars,
said on May 29 that it would issue $230 million of convertible
bonds to buyout firms Warburg Pincus and TPG, which are existing
investors, and Chinese classifieds company 58.com.
    - The bonds will pay interest at an annual rate of 3.75% and
mature in five years. Each note is convertible into Uxin Class A
ordinary shares at $1.03 each, equivalent to $3.09 per American
depositary receipt. The Nasdaq-traded depositary receipts gained
5.6% on May 28 and closed at $2.46.
    - 58.com, Warburg Pincus and TPG will have the right to
nominate one director to Uxin’s board. 
    - For previous columns by the author, Reuters customers can
click on  MAC/ 
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Press release    http://www.globenewswire.com/news-release/2019/05/28/1853795/0/en/Uxin-Announces-Private-Placement-of-Convertible-Notes-for-US-230-Million.html?culture=en-us
BREAKINGVIEWS - Short hit pollutes China’s second-hand car lot  
  urn:newsml:reuters.com:*:nL3N21Z0B6
BREAKINGVIEWS - Chinese used-car sale fails timing test   
 urn:newsml:reuters.com:*:nL4N1TU1CF
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))