Goldman Sachs & Co.: Enforcement on up to 76,350,094 ADSs of Luckin Coffee Inc.
April 06 2020 - 9:33AM
Business Wire
Following an Event of Default under a Loan
Secured by Shares Underlying such ADSs
Following the occurrence of a default by Haode Investment Inc.
(the “Borrower”), a shareholder of Luckin Coffee Inc. (the
“Company”) (NASDAQ: LK), under a US$ 518 million margin loan
facility (the “Facility”), a syndicate of lenders, as secured
parties under the Facility (the “Lenders”), has instructed Credit
Suisse AG, Singapore Branch as security trustee, to exercise the
Lenders’ rights with respect to the collateral securing the
Borrower’s repayment obligations under the Facility. A total of
515,355,752 Class B ordinary shares and 95,445,000 Class A ordinary
shares of the Company have been pledged to secure the Facility,
including shares additionally pledged by an entity controlled by
the family trust of Ms. Jenny Zhiya Qian, the Company’s CEO.
The Borrower is controlled by the family trust of Mr. Charles
Zhengyao Lu, the Chairman of the Company’s Board of Directors. The
Facility is full recourse to Mr. Lu and his spouse.
In connection with the exercise of their rights under the
Facility, the Lenders have commenced the process of enforcement
against the collateral in order to satisfy the Borrower’s
obligations under the Facility, including the conversion of Class B
ordinary shares of the Company into American Depositary Shares
(“ADSs”) of the Company. There are no applicable lock-up
restrictions in respect of the Class A ordinary shares or the ADSs
of the Company (collectively, the “Securities”). Assuming that all
Securities pledged under the Facility were sold, Mr. Lu’s voting
interest in the Company would not decrease, but Ms. Qian’s
beneficial and voting interests would decrease significantly.
The Securities are freely transferable under the federal
securities laws, and no registration of the Securities under the
federal securities laws is required for the offer or sale of the
Securities. The lenders, acting through a disposal agent, expect to
effect sales of the Securities in one or more public market and/or
private transactions, depending on market conditions. No assurance
can be given how many sales will occur and no disposal agent will
have a commitment to purchase any Securities. Various affiliates of
the lenders might be the purchaser(s) of the Securities. No
prospectus or other offering document will be used in connection
with any sale of the Securities and neither the Company nor Mr. Lu
will be involved with, or otherwise participate in, any such sale;
sales will be made by the disposal agent solely on the basis of
public information.
Any person interested in the purchase of the Securities may
direct enquiries to the disposal agent at the contact details set
forth below.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200406005488/en/
Benny Adler Goldman Sachs & Co. LLC. Phone:
+1-212-902-8585
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