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Luckin Coffee completes Financing Milestone under restructuring agreement

Luckin Coffee MarcumBP

BEIJING, China – Luckin Coffee Inc. (in Provisional Liquidation) (“Luckin Coffee” or the “Company”) (OTC:LKNCY) today announced that it has completed the Financing Milestone (as defined below), as contemplated under the restructuring support agreement (“RSA”) entered into with holders of Luckin Coffee’s US$460 million 0.75% Convertible Senior Notes due 2025 (the “Notes”).

As previously announced, the RSA requires the Company to obtain reasonable assurance of funding outside of the People’s Republic of China (“PRC”) in an amount sufficient to satisfy the cash consideration to be distributed to the holders of the Notes under the RSA by June 14, 2021 (the “Financing Milestone”).

The Company has completed the PRC regulatory approval process, including obtaining relevant approvals from The State Administration of Foreign Exchange (“SAFE”) of the PRC through a designated PRC foreign exchange handling bank, to transfer such sufficient amount of funds out of the PRC through a planned capital reduction.

The completion of the approval process satisfies the Financing Milestone under the RSA.

As of the date of this announcement, the holders of the Notes who are party to the RSA collectively hold or control approximately 94% in aggregate principal amount of the Notes.