Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road
Company

Chinese online video platform iQIYI issues convertible bonds to raise over 1 bln USD

March 28, 2019


Abstract : China's leading online entertainment company iQIYI announced the pricing of its proposed offering of convertible bonds, worth 1.05 billion U.S. dollars in total and with a tenor of 6 years, on late Tuesday night.

NEW YORK, March 27 (Xinhua) -- China's leading online entertainment company iQIYI announced the pricing of its proposed offering of convertible bonds, worth 1.05 billion U.S. dollars in total and with a tenor of 6 years, on late Tuesday night.

With an interest rate of 2 percent per year, the bonds will mature on April 1, 2025, unless repurchased, redeemed or concerted before the date, according to a company statement.

The company has also granted initial buyers of the bonds a 13-day option to purchase up to additional such bonds worth 150 million dollars.

The video-streaming service said it plans to use part of the net proceeds of the bonds to expand and enhance its content offerings, to strengthen its technologies, and for working capital.

Convertible bonds are a type of debt security that relevant holders can convert into a certain number of the issuing company's stocks or cash of equal value at certain time within the bonds' tenors.

Such bonds are a flexible financing option for companies and are particularly useful for companies with high risk and high growth potential.

This is the second time that iQIYI issued convertible bonds, after it first announced its convertible notes worth 650 million dollars on Nov. 29, 2018.

The company rang the Nasdaq Stock Market opening bell with an initial public offering of about 2.25 billion dollars on March 29, 2018.

Buyers can convert the notes into the company's American deposit shares (ADSs) with a conversion premium of 32.5 percent to their latest closing stock price.

An ADS is a U.S. dollar-denominated equity share of a foreign-based company for purchase on a U.S. stock exchange.

Around Wednesday's market close, shares of iQIYI slightly fell 0.70 percent to 22.71 dollars per ADS.

Upon conversion, iQIYI will pay or deliver such converting holders cash, ADSs or a combination of cash and ADSs at its election. Holders of the bonds are allowed to convert their notes at any time on or after October 1, 2024.

The bonds have been offered to qualified institutional buyers in the United States and to eligible non-U.S. citizens outside the country.

If the above-mentioned additional 150 million dollars is raised through the 13-day option, iQIYI could raise as much as 1.2 billion dollars through the latest round of convertible bonds issuance.

That would make it the largest such deal by a U.S.-listed Chinese firm, topping the 1.1 billion dollars raised by online travel firm Ctrip.com in 2015, according to data released by global financial data provider Refinitiv.

Scan the QR code and push it to your mobile phone

Keyword: convertible-bonds iQIYI video streaming

Reading:

East China province issues 1st gov't bond to smaller investors

Shanghai Futures Exchange launches crude oil futures index

China's BRI offers British companies huge opportunities, CBBC

CSRC unveils account requirements on convertibles offline subscription

China's local government bonds available over the counter at commercial banks

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial