iQIYI greenshoe exercised, lifts 3.75% convertibles to $750 million

By Devika Patel

Knoxville, Tenn., Dec. 4 – Underwriters for iQIYI Inc.'s offering of 3.75% five-year convertible senior notes exercised their over-allotment option in full for $100 million more of the convertibles, increasing the size of the issue to $750 million on Nov. 30, the company said in a press release.

As previously reported, the company sold the convertibles at par on Nov. 29 in a Rule 144A offering via joint bookrunners Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC.

The convertibles have an initial conversion premium of 40% and an initial conversion price of $26.89, which equals a conversion rate of 37.1830.

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.

iQIYI is a Beijing-based online entertainment service provider.

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