Via Hudson Lockett: By the usual standards, Lenovo’s (0992.HK), opens new tab new debt deal doesn’t make much sense. The $2 billion convertible bond, opens new tab, sold exclusively to a unit of Saudi Arabia’s Public Investment Fund, pays no interest and carries a conversion threshold of HK$10.42 per share that is already below the company’s current stock price. But the security cannot be exchanged for shares until just before it matures in 2027. On the face of it, the laptop maker is getting the better end of the deal.
