By Cristal Cody
Chicago, July 21 – Lenovo Group Ltd. priced $1.25 billion of notes in two parts (Baa2/BBB-/BBB) on Wednesday, a market source told Prospect News.
The company priced $625 million of 5.831% notes due 2028 with a spread of 265 basis points over Treasuries. The notes had been initially talked in the 290 bps area.
The company also sold $625 million of 6.536% green notes with a 10-year tenor. The spread priced at 350 bps over Treasuries versus talk in the 370 bps area.
BNP Paribas, Citigroup Global Markets Inc., Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd., Goldman Sachs (Asia) LLC, HSBC Ltd., J.P. Morgan Securities plc and Morgan Stanley & Co. International plc are the joint global coordinators, joint lead managers and joint bookrunners for the offering.
Bank of China Ltd., Bank of Communications Co., Ltd., Hong Kong Branch, China Construction Bank (Asia) Corp., Ltd., Mizuho Securities Asia Ltd. and Banco Santander, SA are also listed as joint bookrunners.
Proceeds will be used to fund Lenovo’s concurrent capped tender offer for notes due 2023, with proceeds from the green tranche used to finance/refinance new or existing green projects.
Investor calls were started on Monday for the Rule 144A and Regulation S deal.
Lenovo is a Hong Kong-based technology company.
| Issuer: | Lenovo Group Ltd.
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Bookrunners: | BNP Paribas, Citigroup Global Markets Inc., Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd., Goldman Sachs (Asia) LLC, HSBC Ltd., J.P. Morgan Securities plc, Morgan Stanley & Co. International plc, Bank of China Ltd., Bank of Communications Co., Ltd., Hong Kong Branch, China Construction Bank (Asia) Corp., Ltd., Mizuho Securities Asia Ltd. and Banco Santander, SA
|
| Trade date: | July 20
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Six-year notes
|
| Amount: | $625 million
|
| Issue: | Notes
|
| Maturity: | Jan. 27, 2028
|
| Coupon: | 5.831%
|
| Spread: | Treasuries plus 265 bps
|
| Price talk: | Treasuries plus 290 bps area
|
|
|
| Green notes
|
| Amount: | $625 million
|
| Issue: | Green notes
|
| Maturity: | July 27, 2032
|
| Coupon: | 6.536%
|
| Spread: | Treasuries plus 350 bps
|
| Price talk: | Treasuries plus 370 bps area
|
|
|
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