iQIYI Inc. Raises USD 600M Through Convertible Notes

iQIYI Inc, a Chinese video streaming company, announced on Wednesday that it would raise $600 million through the issuance of convertible notes and use the proceeds to repay debt.

In premarket trading, iQIYI's US-listed shares were down nearly 7%.

Video-streaming app Bilibili, Pinduoduo, and others have recently piled into the convertible debt boom. Bilibili raised funds in January by selling discounted American depositary shares to repurchase a convertible note.

iQIYI, China's answer to Netflix, has only reported a couple of quarterly profits and is expected to report its first annual profit this fiscal year since going public.

"The Long Night" and "The Wind Blows From Longxi" are two of iQIYI's hit drama series. Its original variety shows, "The Rap of China" and "The Big Band," have also gotten a lot of attention on social media.

The convertible notes will mature on March 15, 2028, according to the company.

iQIYI, formerly Qiyi, is a Chinese online video platform headquartered in Beijing and Shanghai that debuted on April 22, 2010.

With nearly 6 billion hours spent on its service each month and over 500 million monthly active users, iQIYI is now one of the world's largest online video sites. The company raised $2.25 billion in its initial public offering (IPO) in the United States on March 29, 2018.