07:51 AM EDT, 03/12/2025 (MT Newswires) -- (Updates to add the most recent premarket move in the last paragraph)

Baidu ( BIDU ) said Wednesday that it completed a $2 billion exchangeable bonds offering, maturing in 2032.

The company said the bonds, sold in offshore transactions outside the US to non-US investors, will not accrue regular interest, and the principal will not increase over time.

They are due for repayment on March 12, 2032, unless repurchased, redeemed, or exchanged before that date.

Bondholders can exchange the bonds starting one year after the issue date, subject to certain conditions, Baidu ( BIDU ) said, adding that if an event of default occurs, exchanges can happen immediately.

Baidu ( BIDU ) said it may also choose to deliver Trip.com Group shares instead of cash or in combination with cash.

The company said the initial exchange ratio is 1,107.0457 Trip.com shares per $100,000 of bonds.

It added that it plans to use the proceeds from the offering for debt repayment, interest payments, and general corporate purposes.

Shares of Baidu ( BIDU ) fell more than 1% in recent premarket activity Wednesday.

Price: 93.11, Change: -1.36, Percent Change: -1.44