Chinese online video platform iQiyi has proposed raising USD 1.05 billion in convertible senior notes due 2025, subject to market and other conditions. There will also be a greenshoe of USD 150 million worth of additional notes. Money raised will go to pay a number of capped call transactions, with the rest going to the expansion and enhancement of the company’s content offerings, to developing its technology and for working capital and other general corporate purposes.
A term sheet seen by Reuters showed the bonds were being marketed with an indicative coupon range of 2 -2.5 percent. IQIYI is hoping to lower its borrowing costs compared to its last bond, which had a shorter tenor and higher coupon.
