By Abigail W. Adams
Portland, Me., Dec. 17 – iQIYI Inc. priced $800 million of six-year convertible notes after the market close on Wednesday at par with a coupon of 4% and an initial conversion premium of 27.5%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came at the midpoint of 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.
The convertibles are putable on Aug. 1, 2024 or upon a fundamental change.
The notes are contingently convertible until June 15, 2026.
Concurrently, the company priced a secondary offering of 40 million American Depositary Shares at $17.50 per share.
The secondary offering carries a greenshoe of 6 million shares.
Net proceeds from the convertible offering are expected to be $786 million or will be $884.25 million if the greenshoe is exercised in full.
Net proceeds from the secondary offering are expected to be $680.75 million or will be $782.86 million if the greenshoe is exercised in full.
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.
| Issuer: | iQIYI Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $800 million
|
| Greenshoe: | $100 million
|
| Maturity: | Dec. 15, 2026
|
| Bookrunners: | Goldman Sachs (Asia) LLC, BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $22.31
|
| Conversion rate: | 44.8179
|
| Call options: | Non-callable
|
| Put options: | Putable on Aug. 1, 2024 or upon a fundamental change
|
| Pricing date: | Dec. 16
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| Settlement date: | Dec. 21
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| Distribution: | Registered
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| Talk: | Coupon of 3.75% to 4.25% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: IQ
|
| Stock price: | $17.50 in concurrent offering
|
| Market capitalization: | $13.28 billion
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