Lexin to Issue $300 Million in Notes to PAG in Private Placement

Lexin has secured a deal with PAG to issue $300 million in notes, at the conversion price of $14 per ADS.

Author: Anthony Russo   

LexinFinTech Holdings Ltd. (Nasdaq: LX), the consumer finance company based in Shenzhen, announced on Wednesday that it has entered into a private convertible notes agreement with PAG, the Asian private equity firm, for $300 million.

The notes will expire in seven years, Lexin said in a statement today, and will bear an annual interest rate of 2 percent. The notes will be convertible into American depositary shares at the conversion price of $14 per ADS, Lexin said. 

"PAG has a strong commitment to and deep understanding of China's financial services industry, and we have a demonstrated track record of seeking out and engaging with the industry's leading companies," Weijian Shan, the chairman and chief executive officer of PAG, said in a statement today,

He added, "Lexin has an unparalleled platform for meeting young consumers' credit needs while strictly controlling and minimizing credit risks, which makes it unique, and we are looking forward to supporting the company as it embarks on its next stage of growth."

Lexin reported its second quarter financial results last month, reporting revenue of $363.1 million, up 22 percent year-over-year. Net income narrowed to $91.5 million, or 50 cents per ADS, at a decrease of 5 percent from a year ago. 

Lexin's stock was trading down 3 percent intraday Wednesday, at $11.13 per share.