Lenovo in $675 Million Offering and Repurchase of Existing Convertible Bonds

August 26, 2022

Cleary Gottlieb represented Lenovo Group Limited (Lenovo) in its offering of $675 million 2.5% convertible bonds due 2029 under Regulation S and the repurchase of a portion of Lenovo’s $675 million 3.375% convertible bonds due 2024.

Goldman Sachs, J.P. Morgan, BNP Paribas, and Citigroup acted as joint global coordinators and joint lead managers; Morgan Stanley, Credit Suisse, DBS, and HSBC acted as the joint global coordinators for the offering of the bonds. Goldman Sachs, J.P. Morgan, BNP Paribas, and Citigroup acted as the dealer managers in connection with the repurchase of the Lenovo’s existing convertible bonds.

The bonds are convertible into Lenovo’s ordinary shares. The transactions closed on August 26, 2022, and the bonds were listed on the Stock Exchange of Hong Kong Limited. The proceeds from the offering of the bonds will be used for the repurchase of the $455 million in aggregate principal amount of Lenovo’s existing convertible bonds and general corporate purposes.

Lenovo is the world’s largest PC vendor and holds the No. 1 position in the global PC market across both commercial and consumer segments. It was founded in China in the 1980s, and its common shares are listed on The Stock Exchange of Hong Kong. Lenovo expanded its business and operations to a global scale through the acquisition of IBM’s PC division in 2005. In 2014, Lenovo acquired Motorola Mobility and IBM’s x86 server hardware and related maintenance services business. Focused on a bold vision to deliver smarter technology for all, it is undergoing an “Intelligent Transformation” by designing, engineering, and building the world’s most complete portfolio of smart devices and infrastructure.