Bilibili prices $700M in convertible preferred notes and equity placement

Bilibili, the Shanghai-based video community platform sometimes described as China’s answer to YouTube, just structured a $700 million convertible senior notes offering alongside a sprawling equity and repurchase package. The deal, announced on September 4, 2026, weaves together several interlocking transactions that collectively reshape the company’s capital structure. The centerpiece is a $700 million batch of zero-coupon convertible senior notes maturing on September 15, 2031. Zero-coupon means Bilibili pays no interest on the debt. Instead, investors get the option to convert their notes into the company’s Class Z ordinary shares at a price to be determined. Tencent’s role as anchor investor Tencent Holdings is taking a $200 million slice of the convertible notes through a subsidiary, mirroring the terms of the larger $500 million tranche aimed at other investors. That’s nearly 30% of the total issuance, a substantial commitment that effectively anchors the deal. Tencent is simultaneously conducting a secondary sale of approximately $400 million worth of Bilibili’s Class Z ordinary shares, shifting its exposure from pure equity to a hybrid position. Where the money goes Bilibil...