iQiyi prices upside offering of $350M in convertible senior notes

iQiyi (IQ) announced the pricing of its upsized offering of $350M in aggregate principal amount of 4.625% convertible senior notes due 2030. The Notes will bear interest at a rate of 4.625% per year, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2025. The Notes will mature on March 15, 2030, unless repurchased, redeemed or converted in accordance with the terms. The Notes will initially be convertible at a conversion rate of 64,819 ADSs per US$200,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately US$3.0855 per ADS and represents a conversion premium of approximately 27.5% above the Nasdaq closing price of the Company’s ADSs on February 19, 2025, which was US$2.42 per ADS. Shares of iQiyi are down 10% at $2.19 in early trading following the offering.