NQ Mobile (NQ) Closes $220M Conv. Notes Private Placements

October 4, 2016 7:03 AM EDT

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NQ Mobile (NYSE: NQ) announced the closing of a previously-announced private placement of an aggregate principal amount of US$220 million of convertible notes due 2018 (the "2018 Notes") with Zhongzhi Hi-Tech Overseas Investment Ltd. The 2018 Notes bear interest at a rate of 8.0% per annum from the issuance date and mature in October 2018. The 2018 Notes are convertible, at the holder's option, into the Company's American depositary shares ("ADSs"), each representing five Class A common shares of the Company, at a conversion price of $6.00 per ADS, which represents a 58.7% conversion premium over the closing trading price of $3.78 per ADS on October 3, 2016. The Company plans to use the net proceeds from this private placement for the repayment of existing convertible notes and general corporate purposes.

The 2018 Notes and the ordinary shares represented thereby, have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws of the United States.

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