Latham & Watkins Advises on NIO’s US$1 Billion Convertible Senior Notes

Latham & Watkins has advised Goldman Sachs, Morgan Stanley, CICC, and J.P. Morgan, as initial purchasers, on NIO Inc.’s offering of US$500 million in aggregate principal amount of convertible senior notes due 2029 and US$500 million in aggregate principal amount of convertible senior notes due 2030.

NIO, a pioneer in the premium smart electric vehicle market, designs, develops, jointly manufactures, and sells premium smart electric vehicles, driving innovation in next-generation technology in autonomous driving, digital technologies, electric powertrains, and batteries.

The company has granted the initial purchasers in the notes offering an option, exercisable within a 30-day period beginning on, and including, the date of the notes offering, to purchase up to an additional US$75 million in aggregate principal amount of the 2029 notes and up to an additional US$75 million in aggregate principal amount of the 2030 notes. The 2029 Notes will mature on October 15, 2029, and the 2030 Notes will mature on October 15, 2030, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The company plans to use the net proceeds to repurchase a portion of the existing debt securities, as well as to further strengthen its balance sheet position and for general corporate purposes.

The Latham team was led by Hong Kong partners Posit Laohaphan, Allen Wang, Dominik Sklenar, and Terris Tang, New York partner Reza Mojtabaee-Zamani, and Singapore partner Farhana Sharmeen, with Beijing counsel Wei Wei, Seoul counsel Diona Park, Shanghai associate Jasmine Hu, Singapore associates Kelly Teoh and Ming Wei Loo, Hong Kong associates Stewart Lai and Andrew Yau, and New York associates Polina Tulupova and Kate Kim.