China's YY plans sale of $250 million convertible notes due 2018

By Stephanie N. Rotondo

Phoenix, Nov. 14 - YY Inc. announced a $250 million offering of convertible senior notes due Nov. 15, 2018 in a press release published Thursday.

The deal, to be sold under Rule 144A and Regulation S, will include a $50 million overallotment option.

The notes will be convertible into American Depositary Shares, each of which is equal to 20 common shares.

There will be a put option on Nov. 15, 2016 and holders will also be able to require the company to buy back the notes upon the occurrence of certain fundamental changes.

The notes will be non-callable.

Proceeds will be used to repurchase up to $50 million of outstanding ADSs and for general corporate purposes, including working capital and potential acquisitions.

YY will also enter into capped call transactions to reduce the potential dilution from the new convertibles.

YY is a Guangzhou, China-based social media company.

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