Horizon redeems excess conversion rights and CARIAD voluntarily locks up for 12 months.

On July 23rd, Horizon signed a revised agreement with CARIAD, a subsidiary of Volkswagen Group, regarding the convertible bonds it holds. Horizon plans to redeem CARIAD's excess conversion rights, while CARIAD plans to convert early and become an important shareholder with a combined ownership stake of 9.9%, and voluntarily lock up for 12 months. In order to complete the related cash repurchase, Horizon also proposes to issue $450 million in zero-coupon convertible bonds, with an expected maturity date around July 27, 2027, at a conversion price of 5.55 Hong Kong dollars, representing a premium of approximately 16.8% to the closing price on the 22nd. About $398.9 million will be used to pay for the interest and redemption of the conversion rights under the revised agreement, with the remainder being used for supplementary operating funds and other corporate purposes.