Baidu seeks $2 billion in bonds exchangeable into Trip.com shares
Proceeds from exchangeable bonds issue due in 2032 to be used to repay debt
Chinese technology firm Baidu Inc. is offering as much as $2 billion in bonds that are exchangeable into Hong Kong shares of online-travel company Trip.com Group Ltd.
The exchangeable bonds are due in 2032, Baidu said in a statement Friday. The Beijing-based company said it plans to use proceeds from the offering to repay debt, pay interest and spend on general corporate purposes.
Baidu, a Chinese internet company known for its search engine, is a significant investor in Trip.com, holding a 10.7 per cent stake.
The bonds have a 0% coupon, according to terms of the deal seen by Bloomberg News.
JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Bank of America Corp. are arranging the deal, the terms show.
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