Vipshop Holdings (VIPS) Climbs After Stock Pricing

NEW YORK (TheStreet) -- Vipshop Holdings (VIPS) is trading higher after announcing the pricing of its share and convertible debt offering.

By midafternoon, shares had added 6.8% to $153.51. Trading volume of 3.3 million was more than double its three-month daily average.

The online discount retailer said it had priced its public offering of $550 million worth of its convertible senior notes. The offering had been upwardly revised from a previous amount of $400 million. The senior notes offer an interest rate of 1.5% and will mature on March 15, 2019.

The company plans to use a portion of funds raised in the repayment of existing debt and the remainder for general operational purposes.

Guangzhou, China-based Vipshop also announced select stockholders in the company would sell a total 1.14 million American Depositary Shares (ADSs) at $143.74 per share.

Underwriters will also have a 30-day option to purchase an additional $82.5 million worth of senior notes and 171,000 ADSs.

Vipshop expects the notes and ASS offering to close on March 17, subject to regulatory conditions.

Goldman Sachs and Deutsche Bank are acting as joint book-running managers, while Bank of America and China Renaissance Securities will act as co-managers.

Must read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates VIPSHOP HOLDINGS LTD -ADR as a Hold with a ratings score of C. The team has this to say about their recommendation:

If you liked this article you might like

Alibaba Still Cooperating With SEC Probe as It Forecasts 45% to 49% Sales Growth

These 4 Stocks Are Being Pummeled While the Market Is Tanking