Horizon Robotics (HORIZONROBOT-W) has announced a proposed USD-denominated zero-coupon convertible bond (CB) issuance with a principal amount of USD450.00 million, maturing around 27 July 2027. The instrument will be convertible into Class B ordinary shares under the company’s existing general mandate.

Proceeds allocation is earmarked primarily for the cash settlement of USD398.90 million payable to CARIAD under the previously disclosed Amendment Agreement—comprising a USD344.40 million repayment of the “Excess Portion” loan and an additional cash payment. Any remaining funds will replenish working capital and support other corporate purposes.

Management positions the transaction, together with the amendment of the original convertible loan agreement, as a loan restructuring that reduces potential equity dilution. Compared with the initial convertible loan, the new CB will be issued at a price above both the prevailing market price and the prior conversion price of HKD3.99, while carrying no interest burden.

Completion of the CB offering is not a condition for executing the CLA Amendment. Should the bond placement not proceed, Horizon Robotics intends to fund the obligations to CARIAD from internal resources. The company emphasizes that the CB issuance remains subject to market conditions and may or may not be completed, advising shareholders and investors to exercise caution when trading its securities.