Weibo (WB) Prices Offering of $300 Million Convertible Senior Notes
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Weibo Corporation ("Weibo" or the "Company") (Nasdaq: WB; HKEX: 9898), a leading social media in
The Notes will be senior, unsecured obligations of the Company and bear interest at a rate of 1.375% per year, payable semiannually in arrears on
The initial conversion rate of the Notes is 72.6929 ADSs per
If the amount of the Notes that remains outstanding at any time is less than 10% of the aggregate principal amount of the Notes outstanding at the time of initial issuance, the Company may redeem for cash all but not part of the Notes at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Company may also redeem for cash all but not part of the Notes in the event of certain tax law changes.
Holders of the Notes may require the Company to repurchase for cash all or part of their Notes on
The Company expects that certain purchasers of the Notes may establish a short position with respect to its ADSs by short selling its ADSs or by entering into short derivative positions with respect to its ADSs (including entering into derivatives with an affiliate of the initial purchaser in the Notes Offering), in each case, in connection with the Notes Offering. Any of the above market activities by purchasers of the Notes could increase (or reduce any decrease in) or decrease (or reduce any increase in) the market price of the Company's ADSs or the Notes at that time, and the Company cannot predict the magnitude of such market activity or the overall effect it will have on the price of the Notes or the ADSs.
In order to facilitate short positions by some holders of the Notes for purposes of hedging their investment in the Notes, concurrently with the Notes Offering, the Company has entered into an ADS lending agreement with an affiliate of the initial purchaser of the Notes Offering (such affiliate being the "ADS Borrower"), pursuant to which the Company will lend 6,233,785 ADSs (the "Borrowed ADSs") to the ADS Borrower (the "Registered ADS Borrow Facility"). The Borrowed ADSs have been initially offered at
The closing of the Notes Offering and the closing of the Delta Placement of Borrowed ADSs are contingent upon each other. If the Notes Offering is not consummated, the Borrowed ADSs must be returned to the Company pursuant to the terms of the ADS Lending Agreement.
The ADS Borrower or its affiliate will receive all of the proceeds from the sale of the Borrowed ADSs and the Company will not receive any of those proceeds, but the ADS Borrower will pay the Company a nominal processing fee for the use of those ADSs pursuant to the Registered ADS Borrow Facility.
The Notes, the ADSs deliverable upon conversion of the Notes, if any, prior to the resale restriction termination date (as set forth in the terms of the Notes) and the Class A ordinary shares represented thereby or deliverable upon conversion of Notes in lieu thereof have not been and will not be registered under the Securities Act or securities laws of any other places. They may not be offered or sold within
The Company expects to close the Notes Offering on or about
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
This press release contains information about the pending Notes Offering, and there can be no assurance that the Notes Offering will be completed.
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