iQIYI upsizes five-year convertible notes offering to $600 million

By Abigail W. Adams

Portland, Me., Nov. 29 – iQIYI Inc. has upsized its offering of five-year convertible notes to $600 million from $500 million, according to a market source.

The greenshoe was also upsized to $90 million from $75 million.

The deal is set to price after the market close on Thursday. Price talk remains for a coupon of 3.25% to 3.75% and an initial conversion premium of 40% to 45%, the source said.

Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC are joint bookrunners for the Rule 144A and Regulation S offering.

The notes are non-callable. They are putable on Dec. 1, 2021.

The notes are contingently convertible prior to June 1, 2023 at a 130% trigger. The notes may be settled in cash, American Depositary Shares or a combination of both at the company’s option.

In connection with the convertible notes offering, the company will enter into capped call transactions.

iQIYI is a Beijing-based online entertainment service provider.

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