iQIYI, Inc. $1.2 Billion Convertible Senior Notes Offering

Davis Polk advised the initial purchasers in connection with a Rule 144A and Regulation S offering by iQIYI, Inc. of $1.2 billion aggregate principal amount of its 2.00% convertible senior notes due 2025, including a $150 million option to purchase additional notes, which was exercised in full. In addition, Davis Polk advised the counterparties to capped call transactions entered into in connection with the offering.

iQIYI is an innovative market-leading online entertainment service in China. Its platform features highly popular original content, as well as a comprehensive selection of professionally-produced and partner-generated content. iQIYI is considered one of the largest internet companies in China in terms of user base.

The Davis Polk corporate team included partner James C. Lin and registered foreign lawyers Kevin Zhang and Andrea Feuer. The equity derivatives team included partner John M. Brandow and associates Hanbing Zhang, Crystal Chi and Annie Li. Counsel Alon Gurfinkel and associate Veronica Davis provided tax advice. Members of the Davis Polk team are based in the Hong Kong, London and New York offices.