Lenovo’s latest dual-tranche issuance comprised
preferred perpetual notes, an asset that is expected to feature
increasingly in APAC debt deals.
The Reg S issuance comprised a senior tranche of $500
million 3.875% notes due 2022 (listed in Hong Kong), under the
Chinese group’s existing $3 billion medium-term
note programme. It also included a subordinated tranche of
$850 million 5.375% perpetual notes in the form of
cumulative preferred shares, which are subject to a performance
guarantee from Lenovo.
"The five-year debt securities are straightforward but the
preferred shares are different, as it’s a
wholly-owned subsidiary that issued them," said
Cleary Gottlieb Steen & Hamilton counsel Robert
Williams, who advised Lenovo.
The preferred notes were issued by a Cayman Islands-based
special purpose vehicle (SPV), Lenovo Perpetual Securities.