Nov. 15, 2013
/PRNewswire-FirstCall/ -- SINA Corporation (NASDAQ: SINA) ("SINA" or the "Company"), a leading Internet media company serving
and the global Chinese communities, today announced the pricing of
in aggregate principal amount of convertible senior notes due 2018 (the "notes"). The notes were offered to qualified institutional buyers in reliance on Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"). The Company has granted to one of the initial purchasers a 30-day option to purchase up to an additional
principal amount of notes solely to cover over-allotments, if any. The notes will be convertible into the Company's ordinary shares ("ordinary shares"), at the option of the holders, based on an initial conversion rate of 8.0841 of ordinary shares per
principal amount of notes (which is equivalent to an initial conversion price of approximately
per ordinary share and represents an approximately 45% conversion premium over the closing trading price of the Company's ordinary shares on
November 14, 2013
, which was
per share). The conversion rate is subject to adjustment upon the occurrence of certain events. Holders of the notes may convert their notes in integral multiples of
principal amount at any time prior to the close of business on the second business day immediately preceding the maturity date. SINA will not have the right to redeem the notes prior to maturity except for certain circumstances involving changes in the tax laws for the relevant taxing jurisdiction. Holders of the notes will have the right to require the Company to repurchase for cash all or part of their notes on
December 1, 2016
or upon the occurrence of certain fundamental changes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.
The notes will bear interest at a rate of 1.00% per year, payable semiannually in arrears on
of each year, beginning on
June 1, 2014
. The notes will mature on
December 1, 2018
, unless previously repurchased or converted in accordance with their terms prior to such date.
The Company plans to use
of the net proceeds from the offering to concurrently repurchase its own outstanding ordinary shares. The remainder of the net proceeds of the offering will be used for general corporate purposes, including working capital needs and potential acquisition of complementary businesses.
The Company expects to close the notes offering on or about
November 20, 2013
, subject to the satisfaction of customary closing conditions.
The notes, the ordinary shares deliverable upon conversion of the notes, 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 to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act, or in reliance on other exemptions 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, and shall not constitute an offer, solicitation or sale of the notes, the ordinary shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.