Chicago, Aug. 18 – Lenovo Group Ltd. entered into a bond subscription agreement on Wednesday to issue $675 million of 2.5% convertible bonds due 2029 with a 42.5% initial conversion premium, according to multiple releases on Thursday.
Lenovo can call the bonds at par starting Sept. 9, 2026 subject to a 130% hurdle.
The bonds are putable on Aug. 26, 2026.
Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc, BNP Paribas Securities (Asia) Ltd. and Citigroup Global Markets Ltd. are listed as the dealer managers and joint global coordinators.
Also listed as joint global coordinators are Morgan Stanley Asia Ltd., Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd. and HSBC Ltd.
Proceeds will be used to fund the partial repurchase of the company’s 3.375% convertible bonds due 2024 and for general working capital purposes.
The offer to repurchase the convertible bonds and the new issue are dependent upon one another, and the new offer is conditional upon the satisfaction of various terms.
Lenovo is a Beijing-based technology company.
| Issuer: | Lenovo Group Ltd.
|
| Amount: | $675 million
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| Issue: | Convertible bonds
|
| Maturity: | Aug. 26, 2029
|
| Bookrunners: | Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc, BNP Paribas Securities (Asia) Ltd., Citigroup Global Markets Ltd. (dealer managers and joint global coordinators), Morgan Stanley Asia Ltd., Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd. and HSBC Ltd. (joint global coordinators)
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 42.5%
|
| Conversion price: | HK$9.944
|
| Call features: | Starting Sept. 9, 2026 at par subject to 130% hurdle
|
| Change of control: | At par
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| Puts: | At par on Aug. 26, 2026
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| Trade date: | Aug. 17
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| Settlement date: | Aug. 26
|
| Stock symbol: | HKG: 0992
|
| Stock price: | HK$6.9751 on Aug. 18
|
| Market capitalization: | HK$84.78 billion
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