Latham & Watkins Advises the Initial Purchasers on Qihoo 360’s US$600 Million Convertible Bond Issuance

The landmark transaction is the largest-ever convertible bond issuance by a US listed PRC-based company and also the first in 2013.

September 19, 2013

Latham & Watkins represented Citi, China Renaissance and UBS, as the initial purchasers, on the US$600 million convertible bond issuance by Qihoo 360 Technology Co. Ltd. (“Qihoo 360”), a Chinese Internet and mobile security products and services provider, whose ADSs are listed on the New York Stock Exchange. The bonds are convertible into the listed ADSs of Qihoo 360, based on an initial conversion rate of 9.0119 ADS per US$1,000 principal amount of bonds. This initial conversion rate represents an approximately 40% conversion premium over the last reported sale price of the ADSs at the time of pricing.

“We’re excited to be involved in this landmark transaction, the largest-ever convertible bond issue by a China-based, U.S.-listed company. The deal showcases Latham’s strong capital markets capabilities, especially our on-the-ground expertise in equity-linked products, particularly with U.S. underlyings,” said Eugene Lee, a corporate partner in Latham & Watkins’ Hong Kong office who co-led the deal team.

The Latham & Watkins team in Hong Kong and Beijing was led by partner Eugene Lee who advised on capital markets aspects and counsel Posit Laohaphan who advised on the terms of the convertible bonds, with assistance from associates Ting Zhao and Zheng Wang.


 

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