Acquisition further optimizes Luckin Coffee’s capital structure
The company maintains a strong liquidity position
BEIJING, Aug. 26, 2022 (GLOBE NEWSWIRE) — Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced the full redemption of its US$109.9 million in securities 9.00% Series B Senior Secured Notes Due 2027 (the “New Notes”). The New Bonds represent the Company’s only offshore debt securities and the redemption marks an important step to further optimize the Company’s capital structure.
The aggregate redemption price of the New Bonds is US$110.6 million, which is the total principal amount outstanding plus total accrued interest. The aggregate redemption price is paid from the Company’s available overseas cash balance and the Company’s liquidity position remains strong.
With the full repayment of the New Bonds, the role of the system supervisors under the previously announced Restructuring Support Agreement has come to an end. Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited had been the plan supervisors and, prior to that, joint provisional liquidators since July 15, 2020.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended. These forward-looking statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “will”, “expect”, “anticipate” , “future”, “intends”, “plans”, “believes”, “estimates”, “potential”, “continues”, “ongoing”, “targets”, “directions” and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including, but not limited to, the following: expenses, timing and outcome of legal and governmental proceedings existing or future surveys related to Luckin Coffee; the outcome and effect of the restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-dependency identified in, and the resulting restatement of, certain of Luckin Coffee’s previously reported financial results; the effectiveness of its internal control; its ability to retain and attract customers; its ability to maintain and improve its brand recognition and reputation; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in the Chinese coffee industry or the Chinese food and beverage industry generally; variations in its revenues and certain cost or expense items; expected growth of the Chinese coffee industry or the Chinese food and beverage industry generally; PRC government policies and regulations relating to the Luckin Coffee industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or relating to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in Luckin Coffee’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Luckin Coffee undertakes no obligation to update any forward-looking statements except as required by applicable law.
About Luckin Coffee
Luckin Coffee (OTC: LKNCY) pioneered a technology-driven retail network to provide high-quality, highly convenient and highly affordable coffee and other products to customers. Through proprietary technologies, Luckin Coffee pursues its vision of creating a world-class coffee brand and becoming part of everyone’s daily life. Luckin Coffee was founded in 2017 and is based in China. For more information, visit investor.lkcoffee.com.
Investor and media contacts
Luckin Cafe IR
E-mail: [email protected]
Bill Zima / Fitzhugh Taylor
Telephone: 646 880 9039
Luckin Coffee PR
E-mail: [email protected]
Ed TrisselJack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
Telephone: 212 355 4449