SINGAPORE - JOYY Inc. (NASDAQ:YY), a global technology company, has announced the activation of a repurchase option for holders of its 1.375% Convertible Senior Notes due in 2026. Starting May 10, 2024, note holders can opt to sell their securities back to the company at face value plus accrued interest.
The repurchase right, detailed in the June 24, 2019 indenture with Citicorp International Limited as trustee, allows holders to sell their notes in multiples of $1,000 principal amount. The option will be available until 5:00 p.m., New York City time, on June 13, 2024, with the repurchase date set for June 15, 2024. As this date falls on a Saturday, payments will be made on the following business day, June 17, 2024.
Holders of the notes, which currently amount to an aggregate principal of $406,038,000, will receive 100% of the principal amount, in addition to any accrued and unpaid interest up to but not including the repurchase date. JOYY will also pay accrued interest on all notes to holders of record as of June 1, 2024, regardless of whether the repurchase right is exercised.
This repurchase opportunity is subject to the terms and conditions outlined in the indenture and the notes. The company has not made any recommendations to holders regarding the exercise of the repurchase right. To participate, note holders must follow the transmittal procedures provided in the Repurchase Right Notice, available through the Depository Trust Company and Citibank, N.A., the paying agent.
The repurchase offer is made solely through the Repurchase Right Notice and related documents, which holders of the 2026 Notes can request from Citibank, N.A. JOYY has filed a Tender Offer Statement on Schedule TO with the United States Securities and Exchange Commission (SEC).
Interested parties are urged to read these documents, which will be available on the SEC's website and JOYY's investor relations page, for important information about the company and the repurchase right.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
JOYY Inc. (NASDAQ:YY) has recently made headlines with its announcement regarding the repurchase option for its convertible notes. Investors considering this opportunity may find the following insights from InvestingPro particularly relevant. With a market capitalization of $2.07 billion and a robust balance sheet, JOYY holds more cash than debt, which could reassure investors of its ability to fulfill its repurchase obligations.
Moreover, JOYY is trading at an attractive Price / Book multiple of 0.4 as of the last twelve months ending Q4 2023, indicating that the company's market value is potentially undervalued relative to its book value. This metric, coupled with a P/E Ratio (Adjusted) of 8.91 and a PEG Ratio of just 0.03 for the same period, suggests that the stock could be an interesting pick for value investors.
InvestingPro Tips also highlight that JOYY's liquid assets exceed its short-term obligations, which may provide additional comfort to note holders considering the repurchase option. Additionally, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months, reinforcing the company's financial stability.
For those looking for more in-depth analysis and additional InvestingPro Tips, JOYY Inc. has 5 more tips listed on InvestingPro, accessible at https://www.investing.com/pro/YY. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.