By Kane Wu and Yantoultra Ngui
HONG KONG (Reuters) -Chinese video streaming platform iQIYI has launched a $300 million convertible bond offering, according to a term sheet reviewed by Reuters on Thursday.
The unsecured senior notes, which have a maturity of five years, pay a coupon of 4.25% to 4.75% a year, payable quarterly.
iQiyi will use the proceeds to repay or repurchase existing debt securities and for general corporate purposes.
Bank of America, Morgan Stanley and JPMorgan are joint bookrunners of the deal, the term sheet showed.
The bond issuance comes as Chinese tech stocks have jumped in recent weeks amid optimism about the DeepSeek AI breakthrough and a thawing of authorities’ approach to internet giants.
IQiyi has risen about 20% this year. Its shares closed at $2.42 apiece on Wednesday to reach a market cap of $2.3 billion, LSEG data showed.
The company’s total revenue for 2024 dropped 8% year-on-year to 29.2 billion yuan while its net profit dropped nearly 60% to 764 million yuan, according to its annual report on Tuesday.
(Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Christopher Cushing and Bernadette Baum)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.