Phoenix New Media Limited ("Phoenix New Media", "ifeng" or the "Company") (NYSE: FENG), a leading new media company in China, today announced that its board of directors has authorized the Company to grant new unsecured term loans (the "Loans") to Particle Inc. ("Particle") on or before January 15, 2017 with an aggregate principal amount of RMB120 million or U.S. dollar equivalent at an interest rate of 9% per annum and with a term of no more than six (6) months.
Pursuant to the board approval, the Company granted an initial Loan of RMB46 million to Particle on November 2, 2016. The Company may grant the remaining Loans to Particle after obtaining approval of the Company's parent company, Phoenix TV, for such Loans.
Particle owns Yidian Zixun ("Yidian"), a rapidly-growing personalized news and life-style information application in China, which allows users to efficiently define and explore individualized content over mobile devices. The Company currently owns approximately 45.1% of the total outstanding shares of Particle (or 41.2% on a fully diluted basis assuming issuance of all shares reserved under Particle's employee share option plan) and has the option to consolidate Particle's financial statements into the Company once Yidian's user base reaches a certain level. The Company also granted unsecured term loans in the aggregate amount of US$34.8 million to Particle in January, April and August 2016.
Particle informed the Company that it intends to use the proceeds of the Loans mainly for market promotion and expansion of its user base. Particle will not be required to provide any security or guarantees for the Loans.
About Phoenix New Media Limited
Phoenix New Media Limited is the leading new media company providing premium content on an integrated platform across Internet, mobile and TV channels in China. Having originated from a leading global Chinese language TV network based in Hong Kong, Phoenix TV, the Company enables consumers to access professional news and other quality information and share user-generated content on the Internet and through their mobile devices. Phoenix New Media's platform includes its ifeng.com channel, consisting of its ifeng.com website and web-based game platform, its video channel, comprised of its dedicated video vertical and mobile video services, and its mobile channel, including its mobile Internet website, mobile applications and mobile value-added services.