iQIYI, Inc. announced the pricing of an upsized offering of US$350 million in aggregate principal amount of 4.625% convertible senior notes due 2030. The notes will bear interest quarterly and mature on March 15, 2030, unless repurchased, redeemed, or converted earlier. The initial conversion price is approximately US$3.0855 per ADS, representing a conversion premium of approximately 27.5% above the Nasdaq closing price of the company’s ADSs on February 19, 2025, which was US$2.42 per ADS.
The net proceeds from the notes offering, after deducting initial purchasers’ discounts and estimated expenses, are expected to be approximately US$344.8 million. iQIYI intends to use these net proceeds for the repayment and/or repurchase of existing debt securities and for general corporate purposes.
Concurrently with the pricing of the new notes, iQIYI entered into privately negotiated agreements with certain holders of its existing convertible senior notes to repurchase approximately US$300 million principal amount of these existing notes in cash. This strategic move aims to optimize the company's debt structure and manage its financial obligations.
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