Lenovo Group, the world's largest PC manufacturer, plans to raise $2 billion by issuing convertible bonds, and the funds raised will be used to buy back existing debts and shares. Lenovo Group said on Thursday that the zero-interest convertible bonds due in 2033 to be issued by the company can be converted to 426,87.7 million shares at a preliminary conversion price of HK$36.70 per share. This preliminary conversion price has a 47.5% premium over the latest closing price of HK$24.88 per share. Lenovo Group said part of the capital raised will be used to buy back the company's US$675 million convertible bonds due in 2029 with a coupon rate of 2.50%. The remaining capital raised will be used to buy back shares in the market and for general corporate purposes. Lenovo Group said these deals will extend the term of its debt, reduce financing costs, and help limit the immediate dilution impact on existing shareholders. Banks advising the Lenovo Group on this bond issuance include J.P. Morgan Chase, HSBC, and BNP Paribas.

Zhitongcaijing · 1d ago
Lenovo Group, the world's largest PC manufacturer, plans to raise $2 billion by issuing convertible bonds, and the funds raised will be used to buy back existing debts and shares. Lenovo Group said on Thursday that the zero-interest convertible bonds due in 2033 to be issued by the company can be converted to 426,87.7 million shares at a preliminary conversion price of HK$36.70 per share. This preliminary conversion price has a 47.5% premium over the latest closing price of HK$24.88 per share. Lenovo Group said part of the capital raised will be used to buy back the company's US$675 million convertible bonds due in 2029 with a coupon rate of 2.50%. The remaining capital raised will be used to buy back shares in the market and for general corporate purposes. Lenovo Group said these deals will extend the term of its debt, reduce financing costs, and help limit the immediate dilution impact on existing shareholders. Banks advising the Lenovo Group on this bond issuance include J.P. Morgan Chase, HSBC, and BNP Paribas.