By Abigail W. Adams
Portland, Me., March 1 – iQIYI Inc. priced $600 million of 6.5% convertible notes due March 15, 2028 on Wednesday in a Regulation S offering with an initial conversion premium of 27.5%, according to a company news release.
The notes will rank junior to secured debt, including certain obligations related to iQIYI’s 6% convertible notes due 2028.
The notes are non-callable until March 20, 2026 and then only upon certain conditions or tax-related events.
They are putable on March 16, 2026 or upon a fundamental change.
The notes will be settled in cash, American Depositary Shares, which represent 7 class A ordinary shares, or a combination of both at the company’s option.
The company repurchased $245 million in principal of its 4% convertible notes due 2026 in privately negotiated transactions.
Proceeds will be used for the repayment or repurchase of debt securities.
iQIYI is a Beijing-based online entertainment service provider.
| Issuer: | iQIYI Inc.
|
| Amount: | $600 million
|
| Issue: | Convertible senior notes
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| Maturity: | March 15, 2028
|
| Coupon: | 6.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $9.86
|
| Conversion rate: | 101.4636
|
| Call options: | Conditional call after March 20, 2026
|
| Put options: | March 16, 2026 or upon a fundamental change
|
| Pricing date: | March 1
|
| Settlement date: | March 7
|
| Distribution: | Regulation S
|
| Stock symbol: | Nasdaq: IQ
|
| Stock price: | $7.73 at market close Feb. 28
|
| Market capitalization: | $5.79 billion
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