ZTO Express Announces Repurchase Option for Convertible Senior Notes Due 2027

ZTO Express Announces Repurchase Right Notification for 1.50% Convertible Senior Notes Due 2027

ZTO Express (Cayman) Inc. has recently made a significant announcement affecting holders of its 1.50% Convertible Senior Notes due in 2027. The company, recognized as a leading express delivery service provider in China, is notifying investors of their right to sell back their notes at face value. This right, known as the Repurchase Right, is set to commence on July 30, 2025, and will expire on August 28, 2025. The announcement was made on July 30, with the actual repurchase date scheduled for September 2, 2025.

Details of the Repurchase Right

According to the terms laid out in an Indenture, holders of these Notes can sell back all or a portion that is an integral multiple of US$1,000. When repurchased, each note will be purchased at 100% of its face value, alongside any accrued and unpaid interest up to the repurchase date. It's worth mentioning that due to a federal holiday on September 1, 2025, interest payments for the notes will take place on the subsequent business day, September 2, 2025. The interest will cover all amounts accumulated until the end of August 2025 for those who held the notes through a specified date.

The total amount of outstanding notes, as of the last filing, was reported to be US$1 billion. Should all holders decide to exercise their Repurchase Right, ZTO will be liable to pay this entire amount to the noteholders.

Procedures for Exercise

Holders wishing to take advantage of this repurchase opportunity are required to follow specific procedures outlined in the company’s Repurchase Right Notice. These procedures can be accessed via the Depository Trust Company, and it is essential that all requests to exercise the repurchase right be submitted before the deadline of 5 PM on August 28.

For any noteholders who change their minds, the ability to withdraw previously tendered notes remains available up until the closing time. ZTO has indicated that it does not endorse or give recommendations related to exercising this right, as this decision ultimately rests with the individual holders of the notes.

Company Background

ZTO Express, traded on the NYSE under the symbol ZTO, is a major player in the fast-growing logistics and express delivery sector in China. The company operates an extensive network, primarily supporting the rise of e-commerce within the region. Utilizing a scalable partner model, ZTO manages crucial logistical operations while empowering partner networks to handle delivery and pickup needs effectively.

Statistics reveal that ZTO has been expanding rapidly, driven by robust demand within the logistics sector. This strategic repurchase initiative highlights the company's commitment to providing value to its investors while simultaneously managing its financial position sustainably.

With the growing influence of e-commerce and logistics chains in China, ZTO’s proactive measures and transparent communications reflect its focus on stakeholder engagement. Investors are encouraged to consult the official documents from the SEC for more detailed insights regarding the Repurchase Right and to stay connected with updates from ZTO Express.

For any queries related to the repurchase mechanics, investors can reach out to Citibank, the appointed trustee, or visit ZTO’s investor relations webpage for additional guidance and information. As the date approaches, interested parties should stay attentive to further announcements to ensure they capitalize on this opportunity effectively.

This repurchase right, now officially in motion, serves to reinforce ZTO's ongoing commitment to financial discipline and investor relations, providing crucial flexibility for current noteholders.