Qudian Raises Offering to $300 Million in Convertible Senior Notes

The news sent the shares in the microcredit company up 7 percent by midday Thursday.

Author: CapitalWatch Staff   

Qudian Inc. (NYSE: QD) upsized its offering of convertible senior notes to $300 million Thursday, its stock rebounding by midday from yesterday's drop.

The company, which provides consumer loans, said the notes will bear interest of 1 percent per year, payable semi-annually in arrears on July 1 and Jan. 1 of each year. The notes are due June 1, 2026.

The initial buyers on the deal will have an option to purchase an additional $45 million, according to the report.

The offering was an increase from the $250 million the company targeted in yesterday's announcement.

In response to the news, shares in the Xiamen-based company jumped nearly 7 percent intraday, to $7.87 apiece, recovering from yesterday's decline.

Qudian said it planned to use the proceeds from the offering to pay the cost of certain capped call transactions and general corporate purposes, including strategic investments in complementary businesses, development of the platform, and potential share repurchases.