Exhibit 99.1
iQIYI Prices Upsized Offering of US$350 Million Convertible Senior Notes
due 2030 and Announces Concurrent Repurchases of Approximately $300 Million
Convertible Senior Notes
BEIJING, Feb. 20, 2025 (GLOBE NEWSWIRE) — iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of
online entertainment video services in China, today announced the pricing of its upsized offering (the “Notes Offering”) of US$350 million in aggregate principal amount of 4.625% convertible senior notes due 2030 (the
“Notes”). 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 of the Notes prior to such date.
The Notes
will rank effectively junior to any of the Company’s secured indebtedness (including a portion of the Company’s obligations related to the outstanding convertible notes due January 2028) to the extent of the value of the assets securing
such indebtedness. Holders of the Notes may not convert the Notes at any time on or prior to the 40th day following the last date of original issuance of the Notes (such date, the “Compliance Period End Date”). After the Compliance Period
End Date and prior to the close of business on the business day immediately preceding September 15, 2029, the Notes will be convertible only if certain conditions are met. On or after September 15, 2029 until the close of business on the
second scheduled trading day immediately preceding the maturity date, the Notes will be convertible at any time. Upon conversion, holders will receive cash, the American Depositary Shares, each representing seven Class A ordinary shares, with
par value of $0.00001 per share, of the Company (the “ADSs”) or a combination of cash and ADSs, at the election of the Company. 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). The initial conversion rate is subject to adjustment upon the occurrence of certain events. On March 15, 2028 or in the event of certain fundamental changes, the holders of the Notes will have the right to require the Company
to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. The Notes Offering is expected to
close on or about February 24, 2025, subject to the satisfaction of customary closing conditions.
The Notes are offered in offshore
transactions outside the United States to certain non-U.S. persons in compliance with Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). The Notes, the
ADSs deliverable upon conversion of the Notes (if any) and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or any other applicable securities laws, and may not be sold or
otherwise transferred except under an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable securities laws. No public offering of the Notes, the ADSs
deliverable upon conversion of the Notes (if any) and the Class A ordinary shares represented thereby is being made into the United States.