BEIJING, Jan. 3, 2023
/PRNewswire/ -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the
"Company"), a leading provider of online entertainment video
services in China, today announced
the closing of a private placement of US$500
million in secured convertible senior notes (the "Notes") to
PAGAC IV-1 (Cayman) Limited, an affiliate of PAG, an investment
firm focused on the Asia Pacific
region (the "Investor"). The Company entered into a definitive
agreement with respect to the transaction in August 2022. With the closing of this investment,
iQIYI will continue to enhance and expand its business operations,
develop its original content, and improve its working capital.
The Notes may be convertible into the Company's American
depositary shares, each currently representing seven Class A
ordinary shares of the Company, at the holder's option and subject
to the terms of the Notes, at an initial conversion rate of
216.9668 ADSs per USD1,000 principal
amount of Notes, representing a conversion premium of 20% above the
volume weighted average price of the 20 trading days by
August 29, 2022. The Notes bear
an interest rate of 6% per annum and will mature on the fifth
anniversary of the issuance date. Holders of the Notes have the
right to require the Company to repurchase for cash all or part of
their Notes, at a repurchase price equal to 120% and 130% of the
principal amount of the Notes, on or shortly after the third
anniversary of the issuance date and the fifth anniversary of the
issuance date, respectively.
Founded in 2010, iQIYI is one of China's largest providers of long-form
streaming video content, with more than 100 million daily
subscribing members. For the nine months ending September 30, 2022, iQIYI recorded RMB21.4 billion (USD3.0
billion[1]) in
total revenues and RMB528.9 million
(USD74.3 million) in operating
income. iQIYI has increased its operating income margin for four
consecutive quarters and maintained positive operating income for
three consecutive quarters.
Weijian Shan, executive chairman
of PAG, has been appointed as a member of the board of directors of
the Company (the "Board"), effective December 30, 2022. Mr. Shan has also been
appointed as a non-voting member of the audit committee of the
Board and a member of the compensation committee of the Board.
"PAG sees value where value is," said Mr. Yu Gong, Founder, Director and Chief Executive
Officer of iQIYI. "As a leading private equity investor, PAG
recognizes and appreciates iQIYI's market leadership position and
growth potential. We are excited about the partnership with PAG and
look forward to growing the Company together."
Mr. Shan said, "PAG aims to unlock value wherever we find the
best opportunities. iQIYI is a market leader with great potential
for growth. We will work with the Company to further its goals of
expanding the region's leading online entertainment video
service."
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Footnotes:
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[1] RMB to
USD was converted at an exchange rate of US$1 =RMB7.1135 as of
September 30, 2022, as set forth in the H.10 statistical release of
the Board of Governors of the Federal Reserve System. Translations
are provided solely for the convenience of the reader.
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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. The Company
distinguishes itself in the online entertainment industry by its
leading technology platform powered by advanced AI, big data
analytics and other core proprietary technologies. iQIYI attracts a
daily subscriber base of more than 100 million, and its diversified
monetization model includes membership services, online advertising
services, content distribution, online games, IP licensing, talent
agency, online literature, etc.
About PAG
PAG is an alternative investment firm focused on the
Asia Pacific region with three
core strategies: Credit & Markets, Private Equity, and Real
Assets. PAG has more than USD50
billion of assets under management for nearly 300 global
institutional fund investors.
For further information, please contact:
Investor Relations
iQIYI, Inc.
ir@qiyi.com
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SOURCE iQIYI, Inc.