Bilibili (BILI) said Wednesday it plans a $500 million offering of convertible senior notes due June 1, 2030.

The company intends to grant the initial purchasers an option to acquire up to an additional $75 million of the notes.

Bilibili said it expects to use the net proceeds to "enhance" its content ecosystem, among other things.

Concurrently with the offering, a certain number of the company's class Z shares are proposed to be borrowed from third parties and offered in a separate underwritten offering by Goldman Sachs (Asia) and Morgan Stanley Asia.

Bilibili said the underwriters will use the resulting short position to facilitate hedging transactions by certain investors subscribing for the notes.

The company also said it plans to buy a number of its class Z shares offered in the concurrent offering for an amount expected to be up to $100 million under its existing share repurchase program.