Qihoo announces price and interest rate of convertible bonds in 2020 and 2021

Beijing time August 1 afternoon news, Qihoo 360 (Nyse:qihu) today announced that the company will expire in 2020 and 2021, the total amount of 450 million U.S. dollars in the price of advanced convertible bonds.

The issuance of the convertible bond is expected to be completed by August 6. In the event of an oversubscribed subscription, the joint Account manager of the convertible bond issue will be given a 30-day option to purchase an additional 67.5 million dollar 2020 convertible bond and a 67.5 million dollar 2021 maturity convertible. Qihoo is expected to use the proceeds from the issuance of convertible bonds for general business purposes.

The convertible bond will be convertible into the ads stake in Qihoo, which represents 3 common shares per two shares of Qihoo. The initial conversion rate is, the convertible bond expires in 2020, every 1000 dollars can be converted to 7.9789 shares of ads (equivalent to the initial conversion price of about $125.33 per share ads); The convertible bond expires in 2021 and can be converted to 8.2799 ads per 1000 USD ( Equivalent to the initial conversion price of about $120.77 per share ads.

Relative to the final transaction price of the NYSE on July 31, that is, 91.15 USD, the initial conversion price of the convertible bonds maturing in 2020 and the convertible bonds of 2021 is about 37.5% and 32.5% of the premium rate. This conversion rate may be adjusted for specific events.

The convertible bond holder can choose to convert the convertible bond to a 1000-dollar integer multiple of the two convertible bonds before the expiry date of 3 working days.

Holders of convertible bonds due in 2020 have the right to demand that the Qihoo redeem the convertible bonds on August 15, 2017, or when certain fundamental changes occur, and that the redemption Price is 100% of the nominal value and the accrued unpaid interest (excluding redemption day). Holders of convertible bonds due in 2021 have the right to demand that the Qihoo redeem the convertible bonds on August 15, 2019, or when certain fundamental changes occur, and that the redemption Price is 100% of the nominal value and the accrued unpaid interest (excluding redemption day).

The annual interest rate for convertible bonds expires in 2020 is 0.5%, and the annual interest rate for convertible bonds in 2021 is 1.75%. The odd tiger pays interest every six months, and the coupon date is February 15 and August 15 each year. The first coupon date will be February 15, 2015. In the event of early redemption, the expiry dates of the 2020 and 2021 convertible bonds are August 15, 2020 and August 15, 2021 respectively. (D-Gold)