Li & Fung completes Bond Tender Offer and issues New US$400 million Bond to further strengthen its Capital Structure
多多棋牌Li & Fung Limited (“Li & Fung,” “the Group,” or “the Company;” SEHK: 494), the world’s leading supply chain solutions partner for consumer brands and retailers, announced the successful completion of a simultaneous bond tender offer and new bond offering.
The simultaneous measures allow the Company to reduce its interest expense and further optimize its capital structure by extending its debt maturing profile. The new issuance is for a US$400 million five-year medium-term notes at a 4.375% interest rate. The bond tender offer resulted in a buyback of US$375.8 million, representing 50.1%, of its outstanding US$750 million bond that is maturing in May 2020. This is an important step aimed at deleveraging the Company’s balance sheet and providing higher financial flexibility for its upcoming Three-Year Plan (2020 – 2022). The Company continues to maintain its investment grade credit rating at BBB (Standard & Poor’s) and Baa3 (Moody’s) both with Stable Outlook.
Ed Lam, CFO of Li & Fung, said “Coupled with our solid capital structure, the bond tender and offering allow us to actively extend maturity in financing our debt and manage our balance sheet. Together with Temasek’s US$300 million investment in our Logistics business in June this year, we are in a very strong cash position with low gearing ratio and sound financial footing.”
多多棋牌Spencer Fung, Group CEO of Li & Fung, said “We have made significant progress in our current Three-Year Plan and are winning market share and new customers due to our operational excellence, global diversified network and 3D virtual design services. Our capital structure gives us a solid foundation for our new Three-Year Plan. It allows us to seize market opportunities amid global trade disputes and to accelerate our transformation as we create the Supply Chain of the Future for the benefit of our customers and our industry.”