SHANGHAI - H World Group Limited (HK:1179) (NASDAQ:HTHT and HKEx: 1179), a significant entity in the global hotel sector, has announced the initiation of a repurchase option for holders of its 3.00% Convertible Senior Notes due in 2026. The repurchase, or Put Right, allows note holders to sell their notes back to the company on May 1, 2024.
The option to exercise the Put Right began today and will remain open until 5:00 p.m., New York City time, on April 29, 2024. The repurchase price is set at 100% of the principal amount, in addition to any accrued and unpaid interest up to, but not including, the repurchase date.
This announcement follows the company's compliance with SEC requirements, including the filing of a Tender Offer Statement on Schedule TO. Detailed instructions for the exercise of the Put Right are available through the Depository Trust Company and the paying agent, Wilmington Trust, National Association.
H World has not provided any recommendation to its note holders regarding the exercise of the Put Right. The total outstanding principal amount of the notes as of March 29, 2024, was approximately $500 million. If all note holders opt to exercise the Put Right, the company will be obligated to pay this principal sum in addition to the accrued interest.
The next interest payment for the notes is due on May 1, 2024, with holders of record on April 15, 2024, eligible for the accrued interest payment, regardless of their decision to exercise the Put Right.
H World Group Limited operates a vast portfolio of hotels around the world, with a presence in 18 countries and a total of 9,394 hotels as of the end of 2023. The company's business model includes a mix of leased, owned, manachised, and franchised hotels.
This press release is informational and constitutes neither an offer to buy nor a solicitation to sell the notes. The Put Right offer is only valid as per the terms stated in the relevant documents provided by the company. Note holders seeking further details can access the Put Right Notice from the paying agent.
The information in this article is based on a press release statement from H World Group Limited.
InvestingPro Insights
As H World Group Limited navigates the complexities of offering a repurchase option for its convertible notes, investors and stakeholders are closely monitoring the company's financial health and market performance.
According to InvestingPro data, H World Group Limited boasts a robust market capitalization of $12.33 billion, reflecting its significant presence in the global hotel sector. The company's Price to Earnings (P/E) ratio stands at 21.44, with a slight adjustment to 22.29 when considering the last twelve months as of Q4 2023. This indicates a valuation that aligns with its earnings power.
InvestingPro Tips suggest that H World Group Limited is a prominent player in the Hotels, Restaurants & Leisure industry, which may reassure investors of its market position despite the current financial maneuver.
Additionally, analysts have shown confidence in the company's potential by revising their earnings upwards for the upcoming period. This optimism is further supported by the company's revenue growth of 57.86% over the last twelve months as of Q4 2023, showcasing a strong upward trajectory in its financial performance.
For those interested in a deeper dive into the company's prospects and financial nuances, InvestingPro offers an array of additional tips. In fact, there are 9 more InvestingPro Tips available for H World Group Limited, which can provide valuable insights for those considering their options with the Put Right or simply tracking the company's performance. To access these tips and benefit from the comprehensive analysis, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors and note holders alike are encouraged to review the full range of financial metrics and expert insights available on InvestingPro to make informed decisions regarding H World Group Limited's convertible notes and the company's overall investment potential.
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