Bilibili (BILI) has announced the pricing of its upsized US$600 million convertible senior notes offering due 2030, with an additional option for purchasers to buy up to US$90 million. The notes will bear interest at 0.625% annually, with an initial conversion rate of 42.1747 Class Z ordinary shares per US$1,000 principal amount. The conversion price of HK$185.63 per share represents a 27.1% premium over the closing price. The company plans to use proceeds to enhance its content ecosystem, improve monetization, fund share repurchases, and other corporate purposes. Concurrent with this offering, Bilibili announced a delta placement of 10,281,240 borrowed Class Z ordinary shares at HK$140.10 per share to facilitate hedging transactions for convertible arbitrage investors.
Bilibili (BILI) ha annunciato il prezzo della sua offerta aumentata di obbligazioni convertibili senior da 600 milioni di dollari USA con scadenza nel 2030, con un'opzione aggiuntiva per gli acquirenti di acquistare fino a 90 milioni di dollari USA. Le obbligazioni avranno un interesse del 0,625% annuo, con un tasso di conversione iniziale di 42,1747 azioni ordinarie di Classe Z per ogni 1.000 dollari USA di valore nominale. Il prezzo di conversione di 185,63 HK$ per azione rappresenta un premio del 27,1% rispetto al prezzo di chiusura. La società prevede di utilizzare i proventi per migliorare il suo ecosistema di contenuti, aumentare la monetizzazione, finanziare il riacquisto di azioni e altri scopi aziendali. Contestualmente a questa offerta, Bilibili ha annunciato un collocamento delta di 10.281.240 azioni ordinarie di Classe Z prese in prestito a 140,10 HK$ per azione per facilitare le operazioni di copertura per gli investitori di arbitraggio convertibile.
Bilibili (BILI) ha anunciado el precio de su oferta ampliada de notas convertibles senior por 600 millones de dólares estadounidenses con vencimiento en 2030, con una opción adicional para que los compradores adquieran hasta 90 millones de dólares estadounidenses. Las notas devengarán un interés del 0,625% anual, con una tasa de conversión inicial de 42,1747 acciones ordinarias Clase Z por cada 1.000 dólares estadounidenses de valor nominal. El precio de conversión de 185,63 HK$ por acción representa una prima del 27,1% sobre el precio de cierre. La compañía planea usar los ingresos para mejorar su ecosistema de contenido, aumentar la monetización, financiar recompras de acciones y otros fines corporativos. Paralelamente a esta oferta, Bilibili anunció una colocación delta de 10.281.240 acciones ordinarias Clase Z prestadas a 140,10 HK$ por acción para facilitar las transacciones de cobertura para inversores de arbitraje convertible.
Bilibili(BILI)는 2030년 만기인 증액된 6억 달러 규모의 전환사채 선순위 채권 발행 가격을 발표했으며, 구매자가 추가로 9,000만 달러까지 매입할 수 있는 옵션도 제공합니다. 채권은 연 0.625%의 이자를 지급하며, 최초 전환 비율은 미화 1,000달러당 42.1747 클래스 Z 보통주입니다. 주당 185.63 홍콩달러의 전환 가격은 종가 대비 27.1% 프리미엄에 해당합니다. 회사는 조달 자금을 콘텐츠 생태계 강화, 수익화 개선, 자사주 매입 자금 및 기타 기업 목적에 사용할 계획입니다. 이와 동시에 Bilibili는 전환차익거래 투자자들의 헤지 거래를 지원하기 위해 주당 140.10 홍콩달러에 빌린 클래스 Z 보통주 10,281,240주에 대한 델타 플래이스먼트를 발표했습니다.
Bilibili (BILI) a annoncé le prix de son émission majorée de 600 millions de dollars américains de billets convertibles seniors arrivant à échéance en 2030, avec une option supplémentaire permettant aux acheteurs d'acquérir jusqu'à 90 millions de dollars américains. Les billets porteront un intérêt de 0,625 % par an, avec un taux de conversion initial de 42,1747 actions ordinaires de classe Z pour 1 000 dollars américains de montant principal. Le prix de conversion de 185,63 HK$ par action représente une prime de 27,1 % par rapport au prix de clôture. La société prévoit d'utiliser les fonds pour renforcer son écosystème de contenu, améliorer la monétisation, financer des rachats d'actions et d'autres objectifs d'entreprise. Parallèlement à cette offre, Bilibili a annoncé un placement delta de 10 281 240 actions ordinaires de classe Z empruntées à 140,10 HK$ par action afin de faciliter les opérations de couverture pour les investisseurs en arbitrage convertible.
Bilibili (BILI) hat die Preisfestsetzung seiner aufgestockten 600 Millionen US-Dollar Wandelanleihen mit vorrangiger Rangfolge mit Fälligkeit 2030 bekannt gegeben, mit einer zusätzlichen Option für Käufer, bis zu 90 Millionen US-Dollar zu erwerben. Die Anleihen werden mit 0,625% jährlich verzinst und haben eine anfängliche Umtauschrate von 42,1747 Class Z Stammaktien je 1.000 US-Dollar Nennwert. Der Umtauschpreis von 185,63 HK$ pro Aktie stellt eine Prämie von 27,1% gegenüber dem Schlusskurs dar. Das Unternehmen plant, die Erlöse zur Stärkung seines Content-Ökosystems, zur Verbesserung der Monetarisierung, zur Finanzierung von Aktienrückkäufen und für weitere Unternehmenszwecke zu verwenden. Zeitgleich mit diesem Angebot kündigte Bilibili eine Delta-Platzierung von 10.281.240 geliehenen Class Z Stammaktien zu 140,10 HK$ pro Aktie an, um Absicherungsgeschäfte für Investoren im Wandelarbitragegeschäft zu erleichtern.
Positive
Successful upsizing of convertible notes offering to US$600 million shows strong investor interest
Low interest rate of 0.625% annually indicates favorable financing terms
Proceeds will be used strategically for content ecosystem enhancement and monetization improvement
Company demonstrates confidence through share repurchase program
Negative
Additional debt burden of US$600 million (potentially US$690 million) on the company's balance sheet
Potential dilution for existing shareholders upon conversion of notes
Increased interest expense, though minimal, adds to financial obligations
Insights
Bilibili's $600M convertible note offering improves liquidity but adds debt and potential dilution; proceeds fund growth initiatives and share repurchases.
Bilibili has priced an upsized $600 million convertible senior notes offering due 2030, with an additional $90 million option granted to initial purchasers. The pricing reflects a 0.625% interest rate with conversion at $185.63 HKD per share, representing a 27.1% premium over the current share price.
This financing move is strategically significant as it provides Bilibili with substantial capital while minimizing immediate interest burden. The 0.625% coupon rate is remarkably low, reflecting both the convertible nature of the notes and current market conditions. However, investors should recognize the potential dilution risk if these notes convert to equity, as the conversion would add approximately 25.3 million Class Z ordinary shares (about 6.3% of outstanding shares).
The company has structured a sophisticated transaction with three interconnected components: the notes offering, a concurrent delta offering of borrowed shares, and share repurchases. This arrangement enables convertible arbitrage investors to establish hedging positions while allowing Bilibili to simultaneously repurchase and cancel shares, partially offsetting potential dilution.
The proceeds allocation reveals management's priorities: enhancing content to drive user growth, developing IP assets, improving monetization efficiency, and funding share repurchases. This balanced approach addresses both growth initiatives and shareholder returns.
The 2030 maturity provides Bilibili with long-term capital, while including investor protections through potential repurchase rights at year three (2028). The company also maintains flexibility with redemption options if the share price exceeds 130% of the conversion price for specified periods or if less than 10% of the notes remain outstanding.
This financing strengthens Bilibili's balance sheet but increases leverage and future obligations. The successful upsizing of the offering suggests strong institutional investor interest despite the company operating in China's heavily regulated content space.
SHANGHAI, May 21, 2025 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (Nasdaq: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced the pricing of its upsized offering (the “Notes Offering”) of US$600 million in aggregate principal amount of convertible senior notes due 2030 (the “Notes”). The Notes have been offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company has granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$90 million principal amount of the Notes, exercisable for settlement within a 30-day period beginning on, and including, the date on which the Notes are first issued.
The Company plans to use the net proceeds from the Notes Offering to enhance its content ecosystem to facilitate user growth, facilitate IP asset creation, and unleash its inherent potential. The Company also plans to use the net proceeds from the Notes Offering to improve its overall monetization efficiency, fund the Concurrent Repurchase (as defined below), fund future repurchases (from time to time) under its share repurchase program, and for other general corporate purposes.
When issued, the Notes will be senior, unsecured obligations of the Company. The Notes will mature on June 1, 2030, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Holders may convert their Notes at their option at any time prior to the close of business on the seventh scheduled trading day immediately preceding the maturity date. The initial conversion rate of the Notes is 42.1747 Class Z ordinary shares per US$1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately HK$185.63 per Class Z ordinary share and represents a conversion premium of approximately 27.1% above the closing price HK$146.00 per Class Z ordinary share of the Company on the Hong Kong Stock Exchange on May 21, 2025) and a premium of approximately 32.5% to the clearing share price of the Concurrent Delta Offering of HK$140.10 per Class Z ordinary share of the Company, and is subject to adjustment upon the occurrence of certain events described below. Upon conversion, subject to certain procedures and conditions set forth in the terms of the Notes, the Company will cause to be delivered the Company’s Class Z ordinary shares, par value US$0.0001 per share. Holders may elect to receive the Company's American depositary shares ("ADS"), each representing one Class Z ordinary share, in lieu of Class Z ordinary shares deliverable upon conversion.
The Company may redeem for cash all or any part of the Notes on or after June 6, 2028 if the last reported sale price of the Class Z ordinary shares has been at least 130% of the conversion price for the Notes then in effect for at least 20 trading days, whether or not consecutive, during any 30 consecutive trading day period preceding the date on which the Company provides notice of redemption (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption (the “Optional Redemption”). In addition, the Company may redeem for cash all but not part of the Notes at any time if less than 10% of the aggregate principal amount of Notes originally issued remains outstanding at such time (the “Cleanup Redemption”). The Company may also redeem the Notes upon the occurrence of certain tax-related events (the “Tax Redemption”). Holders of the Notes may require the Company to repurchase for cash all or part of their Notes in cash on June 1, 2028, or in the event of certain fundamental changes. In connection with certain corporate events or if the Company issues a notice of Optional Redemption, Cleanup Redemption or Tax Redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their Notes in connection with such corporate event or such Optional Redemption, Cleanup Redemption or Tax Redemption.
The Notes will bear interest at a rate of 0.625% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2025.
The Company also announced the pricing of the previously announced concurrent offering of its 10,281,240 Class Z ordinary shares that are being borrowed from non-affiliate third parties and offered in a separate underwritten offering by Goldman Sachs (Asia) L.L.C. and Morgan Stanley Asia Limited (the “Underwriters” and the “Concurrent Delta Offering”, respectively), each acting severally on behalf of itself and/or its respective affiliates, at HK$140.10 per Class Z ordinary share. The Underwriters will use the resulting short position to facilitate hedging transactions by certain investors subscribing for the Notes, who employ a convertible arbitrage strategy (the “Convertible Arbitrage Investors”). The Company has been advised that each Underwriter is concurrently entering into off-market privately negotiated derivative transactions relating to the Class Z ordinary shares, enabling Convertible Arbitrage Investors to establish their initial short positions in the Class Z ordinary shares to hedge market risk in the Notes. The number of Class Z ordinary shares subject to the Concurrent Delta Offering generally corresponds to such initial short positions of the Convertible Arbitrage Investors. No new Class Z ordinary shares will be issued in the Concurrent Delta Offering. Any securities sold in the Concurrent Delta Offering are being offered and sold through a concurrent SEC-registered offering pursuant to a separate prospectus supplement and an accompanying base prospectus. The Company will not receive any proceeds from the Concurrent Delta Offering. The Notes Offering and the Concurrent Delta Offering are contingent upon each other.
The Company will use part of the proceeds from the Notes Offering for the Concurrent Repurchase. The Concurrent Repurchase enables investors to establish some of their initial short positions in the Class Z ordinary shares to hedge market risk in the Notes and reflects the Company’s confidence in its long-term strategy and growth. The repurchased shares will be cancelled.
Other Matters
The Notes, the Class Z ordinary shares deliverable upon conversion of the Notes or the ADSs deliverable in lieu thereof have not been registered under the Securities Act, or any state securities laws. They may not be offered or sold within the United States or to U.S. persons, except in reliance on the exemption from registration under the Securities Act.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of these 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.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, the terms of the Notes, whether the Company will complete the Notes Offering, a description of various hedging activities, and statements about Bilibili’s beliefs and expectations, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.
About Bilibili Inc.
Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.
What is the size and interest rate of Bilibili's (BILI) 2025 convertible notes offering?
Bilibili's convertible notes offering is US$600 million with an additional US$90 million option, bearing an interest rate of 0.625% annually, payable semiannually.
What is the conversion price for BILI's 2030 convertible notes?
The initial conversion price is HK$185.63 per Class Z ordinary share, representing a 27.1% premium over the closing price of HK$146.00.
When do Bilibili's 2030 convertible notes mature?
The convertible notes will mature on June 1, 2030, unless repurchased, redeemed, or converted earlier.
How does Bilibili plan to use the proceeds from the convertible notes offering?
Bilibili plans to use the proceeds to enhance its content ecosystem, improve monetization efficiency, fund share repurchases, and for general corporate purposes.
What is the concurrent delta placement in Bilibili's convertible notes offering?
Bilibili is conducting a concurrent delta placement of 10,281,240 borrowed Class Z ordinary shares at HK$140.10 per share to facilitate hedging for convertible arbitrage investors.
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