BEIJING, July 2, 2018 /PRNewswire/ -- Momo Inc. ("Momo" or
the "Company") (NASDAQ: MOMO), a leading mobile social networking
platform in China, today announced
the completion of its offering of US$650
million in aggregate principal amount of convertible senior
notes due 2025 (the "Notes") (the "Offering"). The
Company has granted the initial purchasers in the Offering a 30-day
option to purchase up to an additional US$100 million principal amount of the Notes. The
Notes will be convertible into Momo's American depositary shares
("ADSs"), at the option of the holders, based on an initial
conversion rate of 15.4776 of the Company's ADSs per US$1,000 principal amount of Notes (which is
equivalent to an initial conversion price of approximately
US$64.61 per ADS and represents an
approximately 42.5% conversion premium over the closing trading
price of the Company's ADSs on June 26,
2018, which was US$45.34 per
ADS). The conversion rate for the Notes is subject to adjustment
upon the occurrence of certain events.
Holders of the Notes may convert their notes, in integral
multiples of US$1,000 principal
amount, at any time prior to the close of business on the second
business day immediately preceding the maturity date. Momo will not
have the right to redeem the Notes prior to maturity, except in the
event of certain changes to the tax laws or their application or
interpretation. Holders of the Notes will have the right to require
the Company to repurchase all or part of their Notes in cash on
July 1, 2023, or in the event of
certain fundamental changes.
The Notes will bear interest at a rate of 1.25% per year,
payable semiannually in arrears on January
1 and July 1 of each year,
beginning on January 1, 2019. The
Notes will mature on July 1, 2025,
unless previously repurchased, redeemed or converted in accordance
with their terms prior to such date.
The Company plans to use the net proceeds of the Offering to (i)
repay the US$300 million bank loan
facility it entered into in May 2018
to partially finance its acquisition of Tantan Limited ("Tantan"),
(ii) pay the outstanding consideration for the Tantan acquisition,
as well as to invest in Tantan's business development initiatives
and (iii) invest in various business development initiatives for
the Momo platform, including the purchase of intellectual property
for Momo's live video and mobile games services. The remaining net
proceeds of the Offering will be used to support the Company's
ongoing working capital needs.
The Notes, the ADSs deliverable upon conversion of the Notes and
the Class A ordinary shares represented thereby have not been
registered under the Securities Act of 1933 (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
and/or to certain non-U.S. persons in offshore transactions in
reliance on Regulation S 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, nor
shall there be a sale of the securities in any state or
jurisdiction in which such an offer, solicitation or sale would
be unlawful.
Safe Harbor Statement
This press release contains forward-looking statements,
including forward-looking statements about the Offering, including
the expected use of proceeds of the Offering. Momo may also make
forward-looking statements in the Company's periodic reports to the
U.S. Securities and Exchange Commission ("SEC"), in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements. These
forward-looking statements can be identified by terminology, such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "confidence," "estimates" and similar statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, risks related to market
conditions, the risk that Momo is unable to or does not use the
proceeds of the Offering as expected, risks related to our ability
to execute our goals, strategies and future business development, a
decline in the growth of mobile social networking platforms in
China, a decline in the demand for
our services, the size of our user base and level of user
engagement, competition in our industry, technological challenges,
changes in relevant government policies and regulations and other
risks included in Momo's annual report on Form 20-F for the
fiscal year ended December 31, 2017 filed with the SEC on
April 26, 2018 and other filings with the SEC. All information
provided in this press release is current as of the date hereof,
and Momo assumes no obligation to update such information, except
as required under applicable law.
About Momo Inc.
Momo is a leading mobile social networking platform in
China. Momo connects people in a
personal and lively way through a revolutionary mobile-based social
networking platform. With powerful and precise location-based
features, Momo enables users to connect with each other and expand
relationships from online to offline. Momo's platform includes the
Momo mobile application, the Hani mobile application and a variety
of related features, functionalities, tools and services that it
provides to users, customers and platform partners. Leveraging its
social interest graph engine and analysis of user behavior data,
Momo is able to provide users a customized experience based on
their social preferences and needs. Momo users can maintain and
strengthen their relationships through private and group
communication tools, content creation and sharing functions, as
well as the offline social activities promoted on Momo's platform.
Momo users are also able to enjoy live video on our platform. In
addition, in May 2018, Momo completed
its acquisition of Tantan, a leading social and dating app for the
younger generation that was founded in 2015. Tantan, whose primary
users consist of young Chinese singles, is designed to help its
users find and establish romantic connections, as well as meet
interesting people.
Contact:
Investor Relations
Momo Inc.
Phone: +86 10 5731-0538
Email: ir@immomo.com
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SOURCE Momo Inc.