Chinese online video platform Bilibili proposes convertible bond to raise $300m

NEW YORK - Bilibili Inc, a popular Chinese online entertainment platform, proposed on Monday to offer convertible bonds of up to $300 million in total and with a tenor of 7 years, in a bid to raise more capital.

The move came as the latest of a US-listed Chinese company resorting to convertible bonds to seek investment in capital markets, following China's leading online entertainment company iQIYI's issuance of convertible bonds of $1.05 billion and due 2025 on March 27.

The bonds will be convertible into American deposit shares (ADSs) and will mature on April 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date, according to a company statement.

An ADS is a US dollar-denominated equity share of a foreign-based company for purchase on a US stock exchange.

The interest rate, initial conversion rate and other terms of the bonds will be determined at the time of pricing of the bonds.

Bilibili said it intended to grant the initial purchasers in the bonds a 30 day option to buy additional such bonds worth 45 million dollars.

Upon conversion, the company will deliver the ADSs or pay cash to replace any fractional ADS to such converting holders.

Holders of the bonds may also require the company to repurchase all or part of their bonds in cash on April 1, 2024, or in the event of certain fundamental changes.

The online video giant noted it planned to use the net proceeds from the bonds to enrich content offerings, invest in research and development, and for other general corporate purposes.

First launched in June 2009 and officially named "Bilibili" in January 2010, Bilibili has become one of China's largest anime streaming platforms, featuring videos, live broadcasting and mobile games.

The online platform went public on the Nasdaq in March 2018. Bilibili's stock price fell slightly 0.79 percent to 18.80 dollars per share around market close on Monday.