Lenovo’s $500 Million and $850 Million Offerings

March 16, 2017

Cleary Gottlieb represented Lenovo Group Limited in its $500 million offering of 3.875 percent notes due 2022 under Regulation S.

The offering was a takedown from its $3 billion medium-term note program. The notes are listed on The Stock Exchange of Hong Kong Limited.

Concurrently, Cleary also represented Lenovo Perpetual Securities Limited, a special purpose vehicle, in its $850 million Regulation S offering of 5.375 percent perpetual securities. The perpetual securities were issued in the form of cumulative preferred shares of the SPV listed on the Singapore Stock Exchange, with a performance guarantee from Lenovo and a subordinated intra-group note issued by Lenovo to the SPV.  Both transactions priced on March 9, 2017, and closed on March 16, 2017.

Lenovo is the world’s largest PC vendor and holds the No. 1 position in the worldwide PC and tablets market. 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.