Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for iQIYI Inc. > News item |
iQIYI assures investor PAG Asia of future revenue and profit growth
By Devika Patel
Knoxville, Tenn., Aug. 30 – iQIYI, Inc. thanked PAG Asia for its trust in investing $500 million in the company through a private placement of convertible notes and management promised revenue and profit growth to its newest investor.
“Today we entered into an agreement with PAG, the leading investment firm in Asia Pacific, to raise $500 million through convertible bond issuance,” chief financial officer Jun Wang said on the company’s second quarter ended June 30 earnings conference call on Tuesday.
“We would like to thank our new investor’s trust and we are confident about our future performances under Calm Growth strategy, aiming to achieve both revenue and profit growth and business healthiness at the same time; and we will continue to create value to all the stakeholders,” Wang said.
Cash and cash equivalents were RMB 2,923,178,000 as of June 30, 2022, compared to RMB 2,997,212,000 as of Dec. 31, 2021.
Convertible senior notes were RMB 5,990,335,000 as of June 30, 2022, compared to RMB 12,652,172,000 as of Dec. 31, 2021.
On Monday, iQIYI reached a definitive agreement to place $500 million of 6% convertible notes with a 20% initial conversion premium with PAG Asia, PAG Pegasus and/or their affiliates. The deal was announced alongside earnings on Tuesday.
The private placement includes a $50 million greenshoe, exercisable within the first two months of closing.
The notes have a five-year tenor and are convertible at the holder’s option into iQIYI American Depositary Shares at a 20% conversion premium above the volume weighted average price of the ADS during the 20 trading days prior to, and including, Aug. 29.
After three years, noteholders will be able to put the notes at 120. Upon event of certain fundamental changes, noteholders will also be able to exercise put rights at par.
After five years, the notes will be redeemed with a 30% maturity premium.
The transaction is expected to close in the fourth quarter of 2022. Upon closing and satisfaction of certain conditions, PAG Asia will be entitled to appoint one member to iQIYI’s board of directors.
iQIYI is a Beijing-based online entertainment service provider and a controlled subsidiary of Baidu, Inc.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.