Qihoo 360 landmark convertible explained

Author: Ashley Lee | Published: 3 Oct 2013
  • Qihoo 360’s convertible bond was the first from a US-listed Chinaco this year, as well as the largest convertible ever from a US-listed Chinaco;
  • The deal was sold under Rule 144A and Regulation S, allowing exposure to both US and Asian investors;
  • While the deal was well received in the market, it is unclear whether it will prompt further issuances.

Qihoo 360’s convertible bond was not only the first this year but also the largest ever such offering from a US-listed Chinaco. Here’s why it could inspire copycat deals.

The $600 million offering from Chinese internet security company Qihoo 360 Technology was structured unusually, as both a Rule 144A and...