China’s Lenovo extends expiration on preferreds, notes in its capped tender offer

By Taylor Fox

New York, Oct. 28 – Lenovo Perpetual Securities Ltd. and Lenovo Group Ltd. extended the expiration deadline of their tender offer to purchase for cash outstanding preferred shares and notes up to a tender cap to noon ET on Oct. 29 from noon ET on Oct. 28, according to a notice.

As previously reported, the invitation is being extended to holders of, in order of acceptance priority from highest to lowest, Lenovo Perpetual’s outstanding $1 billion 5 3/8% perpetual securities (ISIN: XS1575529539) and Lenovo’s outstanding $500 million 3 7/8% notes due 2022 (ISIN: XS1573181440) and $750 million 4¾% notes due 2023 (ISIN: XS1765886244).

Lenovo also adjusted its offer timetable so that the tender cap is now expected to be determined on or around Oct. 29.

The companies are offering to pay a tender price per $1,000 principal amount of $1,037.00 for the preferreds, $1,032.00 for the 2022 notes and $1,055.00 for the 2023 notes. The companies will also pay accrued interest to but excluding the settlement date.

The companies expect to announce the amount of securities accepted on Oct. 30. Settlement is slated for Nov. 2.

If the tender cap is exceeded, securities will be accepted according to acceptance priority level and with possible pro ration.

The offer is subject to a financing condition. Lenovo announced on Thursday that it is concurrently offering new dollar-denominated fixed-rate senior notes, proceeds of which will be used to finance the tender offer.

Tenders may not be withdrawn.

Citigroup Global Markets Ltd. (+852 2501 2693, liabilitymanagement.asia@citi.com), Morgan Stanley & Co. International plc (+852 2848 5200, apsynd@morganstanley.com), BNP Paribas (+852 2108 5228, asia_syndicate@bnpparibas.com), Credit Suisse (Hong Kong) Ltd. (+852 2101 7132, list.liabilitymanagementasia@credit-suisse.com) and DBS Bank Ltd. (+852 3668 1900, liabilitymanagement@dbs.com) are the dealer managers for the tender offer.

Morrow Sodali Ltd. (+44 20 8089 3287, +852 2158 8405, lenovo@investor.morrowsodali.com, https://bonds.morrowsodali.com/lenovo) is the tender and information agent.

Lenovo is a Beijing-based technology company.

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