LNVGY - Lenovo To Issue $2B In Zero-Coupon Convertible Bonds To Saudi Crown Prince's Sovereign Wealth Fund | Benzinga
Lenovo Group Ltd. (OTC:LNVGY) has decided to issue $2 billion worth of zero-coupon convertible bonds to Saudi Arabia Crown Prince Mohammed Bin Salman‘s sovereign wealth fund. This is part of a broader agreement with the tech-friendly kingdom.
What Happened: The convertible bonds will be issued to Alat, an investment firm backed by the Public Investment Fund of Saudi Arabia, at an initial conversion price of HK$10.42 per share, Bloomberg reported on Wednesday. This price represents a 12% discount on the closing price of Lenovo shares the previous day.
As part of the agreement, Lenovo, a Beijing-based manufacturer of PCs and AI servers, plans to establish a research and development center in Riyadh and expand its production capacity in the region.
Upon maturity, the converted notes would represent about 12% of Lenovo’s current capital, or nearly 11% of the enlarged ...