iQIYI, Inc. Announces Repurchase Right Notification for 4.00% Convertible Senior Notes due 2026
Rhea-AI Summary
iQIYI, a leading provider of online entertainment video services in China, has announced a repurchase right notification for its 4.00% Convertible Senior Notes due 2026. Holders can require the company to repurchase all or part of their notes for cash on August 1, 2024. This repurchase option will be available from July 2, 2024, to July 30, 2024. The repurchase price will be 100% of the principal amount, plus any accrued and unpaid interest up to August 1, 2024. Currently, there is an aggregate principal amount of $395.6 million in notes outstanding. If all notes are repurchased, the total cash purchase price will be approximately $397.6 million. iQIYI will file a Tender Offer Statement on Schedule TO with the SEC and provide detailed procedures for exercising this repurchase right through the Depository Trust Company and Citibank, N.A.
AI-generated analysis. Not financial advice.
Positive
- Holders have a clear exit strategy with the repurchase right.
- Repurchase price set at 100% of the principal amount, ensuring full return of initial investment.
- Accrued and unpaid interest will be included in the repurchase, offering added value.
- Holders can choose to repurchase all or part of their holdings, offering flexibility.
Negative
- Potential cash outflow of approximately $397.6 million if all notes are repurchased.
- Repurchase could impact company's liquidity and financial stability.
- No specific guidance or recommendation from the company's board or employees on exercising the repurchase right.
News Market Reaction – IQ
On the day this news was published, IQ declined 0.84%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, May 28, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of online entertainment video services in China, today announced that it is notifying holders of its
As required by rules of the United States Securities and Exchange Commission (the “SEC”), the Company will file a Tender Offer Statement on Schedule TO today. In addition, documents specifying the terms, conditions, and procedures for exercising the Repurchase Right will be available through the Depository Trust Company and the paying agent, which is Citibank, N.A. None of the Company, its board of directors, or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the Repurchase Right.
The Repurchase Right entitles each holder of the Notes to require the Company to repurchase all of such holder's Notes, or any portion thereof that is an integral multiple of US
The opportunity for holders of the Notes to exercise the Repurchase Right commences, 9:00 a.m., New York City time, on Tuesday, July 2, 2024, and will terminate at 5:00 p.m., New York City time, on Tuesday, July 30, 2024. In order to exercise the Repurchase Right, a holder must follow the transmittal procedures set forth in the Company’s Repurchase Right Notice to holders (the “Repurchase Right Notice”), which is available through the Depository Trust Company and Citibank, N.A. Holders may withdraw any previously tendered Notes pursuant to the terms of the Repurchase Right at any time prior to 5:00 p.m., New York City time, on Tuesday, July 30, 2024, which is the second business day immediately preceding the 2024 Repurchase Date, or as otherwise provided by applicable law.
This press release is for information only and is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of an offer to sell the Notes or any other securities of the Company. The offer to purchase the Notes will be only pursuant to, and the Notes may be tendered only in accordance with, the Company’s Repurchase Right Notice dated May 28, 2024 and related documents.
Holders of the Notes should refer to the Indenture for a complete description of repurchase procedures and direct any questions concerning the mechanics of repurchase to the Trustee by contacting Terence Yeung, Agency & Trust, Citicorp International Limited (Email: terence.yeung@citi.com). Holders of Notes may request the Company’s Repurchase Right Notice from the paying agent, at Citibank, N.A. 480 Washington Boulevard, 16/F, Jersey City, NJ, New York, 07310, Attention: Ashley Ramos, Citibank Agency & Trust Operations.
HOLDERS OF NOTES AND OTHER INTERESTED PARTIES ARE URGED TO READ THE COMPANY’S SCHEDULE TO, REPURCHASE RIGHT NOTICE, AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT IQIYI, INC. AND THE REPURCHASE RIGHT.
Materials filed with the SEC will be available electronically without charge at the SEC’s website, http://www.sec.gov. Documents filed with the SEC may also be obtained without charge at the Company’s website, http://ir.iqiyi.com/.
About iQIYI, Inc.
iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.
For further information, please contact:
Investor Relations
iQIYI, Inc.
ir@qiyi.com
