Lenovo completes repurchase of $455 million of 3.375% convertibles

By Mary-Katherine Stinson

Lexington, Ky., Aug. 29 – Lenovo Group Ltd. completed the repurchase of $455 million of its $675 million 3.375% convertible bonds due 2024 (ISIN: XS1937306121) with the proceeds of a new offering, according to a notice Monday.

As previously reported, the dealer managers had received commitments from holders of $455 million of the existing convertibles to sell their bonds to Lenovo.

The repurchase totals approximately $546.7 million, representing a 120.15 repurchase price.

The previously announced repurchase price was determined on Aug. 18 using the greater of the closing price or the volume-weighted average price on that day, with the VWAP higher at HK$6.9751. Accordingly, using the higher amount, the bonds were repurchased at 119.85.

Accrued interest of 0.3% was also paid.

This leaves $219.5 million of the issue remaining.

Completion of the partial repurchase was subject to the completion of a new bond issue. The new bonds were issued on Aug. 26.

Lenovo may, through the dealer managers, continue to purchase the remaining outstanding existing convertible bonds from the time to time in the open market.

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