09:56 AM EDT, 05/23/2024 (MT Newswires) -- Alibaba Group ( BABA ) has launched a proposed offering of $4.50 billion worth of convertible senior notes due 2031 in a private offering to qualified institutional buyers.

The company said it expects to grant the initial purchasers of the notes an option to buy up to an additional $500 million worth of the notes and enter into capped call transactions with one or more of the initial purchasers.

Alibaba ( BABA ) said it plans to use the net proceeds from the offering to repurchase a number of its American depositary shares, fund further share repurchases, and fund the costs of entering into planned capped call transactions.

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