04:22 AM EDT, 05/24/2024 (MT Newswires) -- Alibaba Group Holding ( BABA ) said late Thursday it priced a private offering to eligible purchasers of $4.5 billion principal amount of 0.50% convertible senior notes due 2031.

The initial conversion rate for the notes will be 9.5202 American depositary shares per $1,000 of the notes, which is equivalent to an initial conversion price of about $105.04 per ADS.

Initial purchasers have been granted a 13-day option to purchase up to $500 million in additional notes.

Net proceeds, estimated to be about $4.44 billion to $4.93 billion, will be used for the repurchase of up to 14.8 million ADSs, other share repurchases, and to fund certain capped call transactions, the company said.

Closing of the offering is expected to occur on May 29, subject to customary closing conditions.

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