Luye Pharma talks $180 million five-year convertibles to yield 5.75%-6.25%, up 26.10%-31.27%

By Abigail W. Adams

Portland, Me., June 27 – Luye Pharma Group Ltd. plans to price up to $180 million of five-year convertible notes on Tuesday with price talk for a coupon of 5.75% to 6.25% and an initial conversion premium of 26.10% to 31.27%, according to a market source.

UBS AG Hong Kong Branch is sole global coordinator and bookrunner for the Regulation S offering.

The base size of the deal is $150 million with a same-day upsize option of $30 million.

The notes are subject to a clean-up call or tax call.

They are putable at par on July 6, 2026 or upon a change of control or delisting event.

The notes are convertible into Luye Pharma’s common stock with the fixed exchange rate US$1 to HK$7.8295.

Shareholder LuYe Pharmaceutical Investment Co., Ltd. has entered into a stock lending agreement with UBS AG London Branch, which will borrow 182.1 million shares to help facilitate hedging activities.

Proceeds will be used to refinance existing debt and for research and development.

Luye Pharma is a Shanghai-based pharmaceutical company.

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