Yatsen Secures $120M in 1.5% Convertible Notes with Warrants for Expansion
Yatsen is issuing RMB-denominated convertible senior notes totaling US$120 million in two equal tranches, bearing 1.5% interest and convertible at US$4.63 per ADS plus warrants to buy Class A shares. Proceeds will fund R&D, global supply chain integration, overseas expansion and strategic M&A.
1. Financing Terms
Yatsen has agreed to issue RMB-denominated convertible senior notes equivalent to US$120 million in two equal tranches, each bearing 1.5% annual interest payable semi-annually. The notes will convert into ADSs at US$4.63 per ADS (20% premium) after an initial 364-day period, and each tranche comes with warrants to purchase Class A ordinary shares at US$0.50 per share.
2. Use of Proceeds
Net proceeds from the transaction are designated to accelerate product research and development, integrate the global supply chain, expand the company’s presence in overseas markets and pursue strategic mergers and acquisitions to drive long-term growth.
3. Strategic Partnership
Founder and CEO Jinfeng Huang is co-investing alongside Trustar Capital, underscoring confidence in Yatsen’s strategic roadmap. Trustar Capital will leverage its cross-border M&A expertise and industry network to support global expansion and post-merger integration efforts.