Lenovo seeks US$2bn loan at lower cost to refinance debt: Bloomberg
Lenovo is seeking a US$2 billion five-year loan at a margin of 75 basis points over SOFR, below the 110 basis points on its 2022 facility, Bloomberg reports. The loan, launched into syndication, aims to refinance the earlier debt at a lower cost.
Lenovo (0992) is seeking a US$2 billion (HK$15.6 billion) five-year loan at a lower cost than an existing facility it plans to refinance, Bloomberg reported on Wednesday.
The loan has been launched into syndication and carries a margin of 75 basis points over the Secured Overnight Financing Rate (SOFR), according to the report. This is significantly lower than the 110 basis points plus a credit adjustment spread over SOFR that Lenovo secured for an equal-sized loan in 2022.
Bloomberg attributed the credit adjustment to the transition from the London Interbank Offered Rate to SOFR. The new facility is intended to refinance the earlier loan at more favourable terms.