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【Horizon Robotics-W (09660.HK): Amends Convertible Loan Agreement; Issues 1.3 Billion New Class B Shares to CARIAD and Pays USD 399M Cash】NewTimeSpace News: On July 22, Horizon Robotics announced that it entered into an Amendment Agreement with CARIAD Estonia AS to early redeem the USD 924.9 million convertible loan issued on December 7, 2023 (maturity December 7, 2026, interest rates 2.67%/5.67%, accrued interest approximately USD 81.9 million as of the Base Date). The Company will issue 1,301,763,486 new Class B ordinary shares to CARIAD (bringing CARIAD and affiliates to the 9.9% threshold) to settle USD 662.4 million of outstanding principal and accrued interest, and pay USD 398.9 million in cash (comprising approximately USD 344.4 million Excess Portion and approximately USD 54.5 million Additional Cash Payment to redeem the Conversion Rights), with settlement expected on or before the eighth business day following the agreement date. CARIAD has committed to a 12-month lock-up on the Conversion Shares and its existing 269,711,694 Class B shares from settlement, and the Convertible Loan Agreement will be fully terminated. The Additional Cash Payment was determined after Black-Scholes valuation with an approximate 28.8% discount. The Board believes the Amendment Agreement reduces potential dilution to existing shareholders and stabilizes the share price, with cash payments to be funded by internal resources and/or external financing.
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