China's online micro-credit provider Qudian proposes convertible debt offering

NEW YORK - Qudian Inc, a Chinese online small consumer credit provider, announced Tuesday a proposed offering of $250 million in convertible senior notes.

The company intends to grant the initial purchasers in the notes offering a 30-day option to purchase up to an additional $37.5 million aggregate principal amount of the notes, according to its statement.

The notes will mature on July 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date, said the filing. They can be convertible into American Depositary Shares (ADSs) of the company at the option of the holders at any time prior to the close of business on the second scheduled trading day immediately preceding July 1, 2026.

Net proceeds from the notes offering will be mainly used to pay for related capped call transactions and general corporate purposes, including strategic investments in complementary businesses, development of the company's open platform and potential share repurchases.

Founded in 2014, the company uses big data-enabled technologies to make personalized credit accessible.

It targets hundreds of millions of young, mobile-active consumers in China who need access to small credit for their discretionary spending but are underserved by traditional financial institutions due to lack of traditional credit data.

Qudian was listed on New York Stock Exchange in 2017. Shares of the company dropped 2.98 percent on Tuesday.