iQIYI Announces the Closing of Its Offering of US$350 Million Convertible Senior Notes due 2030 and Concurrent Repurchase of Approximately US$300 Million Existing Convertible Senior Notes

Core Viewpoint - iQIYI, Inc. has successfully closed a $350 million offering of 4.625% convertible senior notes due 2030, with net proceeds of approximately $344.8 million intended for debt repayment and general corporate purposes [1][4]. Group 1: Notes Offering Details - The Notes bear an interest rate of 4.625% per year, payable quarterly starting June 15, 2025, and will mature on March 15, 2030 [1]. - The initial conversion rate is set at 64,819 American Depositary Shares (ADSs) per $200,000 principal amount of Notes, equating to an initial conversion price of approximately $3.0855 per ADS, representing a 27.5% premium over the Nasdaq closing price of $2.42 on February 19, 2025 [2]. - The Notes will be convertible under specific conditions after a compliance period, with the ability to convert at any time after September 15, 2029 [2]. Group 2: Repurchase Transactions - The company has entered into privately negotiated agreements to repurchase approximately $300 million principal amount of existing convertible senior notes [4]. - These repurchase transactions may influence the market price of the ADSs and the trading price of existing notes and other debt securities [5]. Group 3: Company Overview - iQIYI, Inc. is a leading provider of online entertainment video services in China, leveraging technology and creative talent to produce a diverse range of content [8]. - The company has developed a diversified monetization model that includes membership services, online advertising, content distribution, online games, IP licensing, and more [8].