Alibaba offers $3.17 billion convertible notes due 2032 - Bloomberg

Alibaba Group Holding Limited (NYSE: BABA) announced the offering of $3.17 billion in convertible notes with a maturity date of 2032, according to terms disclosed, as reported by Bloomberg News.

The convertible notes carry zero coupon, meaning they do not pay periodic interest to holders. The conversion premium is set between 27.5% and 32.5%, which represents the amount above the current stock price at which the notes can be converted.

The notes will convert into American Depositary Receipts of the company rather than direct shares. The offering provides Alibaba with additional capital while giving investors the option to convert their debt holdings into equity if the stock price appreciates sufficiently above the conversion threshold.

The terms were disclosed in a statement from the company regarding the debt offering structure and conversion mechanics.

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