IQIYI Raises $600M Via Convertible Senior Note Offering For Debt Repayment

IQIYI, Inc IQ raised $600 million via a secondary offering of 6.50% convertible senior notes due 2028.
The notes will bear interest at a rate of 6.50% per year, payable quarterly in arrears on March 15, June 15, September 15, and December 15 of each year, beginning June 15, 2023.
The notes will mature on March 15, 2028.
The notes will initially be convertible at a premium of 27.5% above the Nasdaq closing price on February 28, 2023, of $7.73.
The Company intends to use the offering proceeds for debt repayment.
Shortly after the pricing of the notes, the Company entered into privately negotiated agreements with certain holders of the Company's 4% convertible senior notes due 2026 to repurchase approximately $245 million principal amount of the existing notes for cash.
On February 22, revenue from IQIYI increased 3% Y/Y to $1.10 billion, beating the consensus of $1.09 billion. iQIYI subscribers reached 111.6 million, up from 97 million a year ago.
IQIYI held $1.3 billion in cash and equivalents and RMB 9.57 billion in convertible senior notes as of December 31.
Price Action: IQ shares traded lower by 15.10% at $6.57 on the last check Wednesday.