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Bilibili plans to raise up to US$1.6 billion through convertible note sale, using funds to enrich content and pay debt
- Video-streaming and mobile gaming company to sell notes set to mature in December 2026
- Bilibili plans to use proceeds to enrich content offering, for research and development
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Bilibili said it plans to raise up to US$1.6 billion by issuing convertible debt, as the video-streaming and mobile gaming company navigates a challenging regulatory environment against the backdrop of Beijing’s crackdown on the technology sector.
The Shanghai-based firm said it plans to sell US$1.4 billion of the convertible senior notes, which are set to mature on December 1, 2026, subject to market conditions and other factors, the company said in a stock exchange filing. Initial purchasers of the notes would have a 30-day option to buy an additional US$200 million of the notes, the company said.
Bilibili plans to use the net proceeds to enrich its content offerings, for research and development, and for general corporate purposes. The company also plans to use an equivalent amount of the net proceeds from the offering to finance or refinance its debt.
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The notes can be converted to cash, American depositary shares (ADSs) or a combination of ADSs and cash ahead of their maturity. Holders also have the option to take Class Z ordinary shares in lieu of ADSs.
Trading of Bilibili’s shares was suspended in Hong Kong on Friday morning in anticipation of the announcement. Bilibili’s shares fell almost 11 per cent on Thursday.
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Bilibili’s return to the capital market came eight months after pricing its secondary listing in Hong Kong in March, where the company raised US$2.6 billion, 7 per cent less than its initial target.
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