Chinese video streaming service iQIYI Inc. is looking to raise US$1.05 billion by offering convertible notes.

The Baidu Inc.-owned platform said March 25 that the notes will be senior, unsecured obligations of the company. The bonds will mature April 1, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date.

The company plans to use part of the net proceeds to pay costs of capped call transactions and use the remainder to expand and enhance its content offerings, strengthen its technologies, as well as for working capital and other general corporate purposes.

The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the notes.