iQIYI talks $800 million six-year convertibles to yield 3.75%-4.25%, up 25%-30%

By Abigail W. Adams

Portland, Me., Dec. 16 – iQIYI Inc. plans to price $800 million of convertible notes due Dec. 15, 2026 after the market close on Wednesday with price talk for a coupon of 3.75% to 4.25% and an initial conversion premium of 25% to 30%, according to a market source.

Goldman Sachs (Asia) LLC, BofA Securities Inc. and J.P. Morgan Securities LLC are bookrunners for the registered offering, which carries a greenshoe of $100 million.

The notes are non-callable.

They are putable on Aug. 1, 2024 or upon a fundamental change.

The notes are contingently convertible until June 15, 2026.

Concurrently, the company is pricing a secondary offering of 40 million American Depositary Shares.

The secondary offering carries a greenshoe of 6 million shares.

Proceeds from the concurrent offerings will be used to expand and enhance content offerings, for working capital and for other general corporate purposes.

iQIYI is a Beijing-based online entertainment service provider.

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