(Updates with pricing in headline and first paragraph, and adds repurchase details in later paragraphs.)
Bilibili (BILI) has priced a $700 million offering of convertible senior notes due 2031 to non-U.S. qualified institutional buyers, the company said Friday.
Tencent Holdings has agreed to subscribe for $200 million of the notes through a subsidiary, Bilibili said. The Tencent subscription and Bilibili's planned repurchase of Tencent-held shares are subject to conditions, including shareholder approval.
Proceeds will be used to fund planned concurrent share repurchases, artificial intelligence growth, and general corporate purposes, the company said. The board authorized a separate special repurchase program of up to $300 million for the concurrent repurchases.
Bilibili also priced a concurrent equity placement of about 7.0 million Class Z ordinary shares at 115.38 Hong Kong dollars ($14.85) each, while Tencent sold about 26.4 million Class Z shares at the same price.
Price: $15.85, Change: $+0.35, Percent Change: +2.26%