iQIYI’s $1.5 Billion Concurrent Convertible Notes and Equity Offerings


Davis Polk advised the joint book-running managers in connection with the offerings.

iQIYI, Inc. executed its offering of $800 million aggregate principal amount of its 4.00% convertible senior notes due 2026, with a $100 million option to purchase additional notes, as well as an aggregate of 40,000,000 American depositary shares at a price to public of $17.50 per ADS, with an option to purchase up to 6,000,000 additional ADSs.

Goldman Sachs (Asia) L.L.C., BofA Securities, Inc. and J.P. Morgan Securities LLC acted as joint book-running managers for the offerings.

iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, professional user generated content and user-generated content.

The Davis Polk corporate team included partners Li He (Picture) and James C. Lin, counsel – registered foreign lawyer Kevin Zhang and registered foreign lawyers Jennifer (Yujia) Jiang, Crystal Chi and Wentian Xie. The equity derivatives team included partners John M. Brandow and Yan Zhang and associate Hanbing Zhang. Counsel Alon Gurfinkel and associate Omer Harel provided tax advice.

Involved fees earner: John Brandow – Davis Polk & Wardwell; Crystal Chi – Davis Polk & Wardwell; Alon Gurfinkel – Davis Polk & Wardwell; Omer Harel – Davis Polk & Wardwell; Li He – Davis Polk & Wardwell; Jennifer Jiang – Davis Polk & Wardwell; James Lin – Davis Polk & Wardwell; Wentian Xie – Davis Polk & Wardwell; Kevin Zhang – Davis Polk & Wardwell; Yan Zhang – Davis Polk & Wardwell; Hanbing Zhang – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Bank of America Securities; Goldman Sachs (Asia) L.L.C.; J.P. Morgan Securities LLC;

Author: Michael Patrini