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FINWIRES

Luye Pharma Plans $180 Million Convertible Bond Sale, Bond Buyback

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Luye Pharma (HKG:2186) proposed issuing $180 million of 5.25% convertible bonds due 2031 and concurrently repurchasing its outstanding $180 million 6.25% convertible bonds due 2028, according to a Thursday Hong Kong bourse filing.

The pharma company said bondholders have already committed to sell about $89.7 million principal amount of the 2028 bonds, leaving about $90.3 million outstanding.

The new bonds carry an initial conversion price of HK$2.71 per share, a 24.9% premium to the stock's last closing price. If fully converted, they would represent about 13% of the company's existing issued share capital.

Net proceeds of about $177.2 million will be used to refinance existing debt, including the bond repurchase, and for general corporate purposes.

The company intends to list the bonds on the Vienna Stock Exchange and will seek approval from the Hong Kong Stock Exchange for the listing of the conversion shares.

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