Lee & Man launched a buyback offer to purchase up to $130mn of its USD 5.5% Perps, by offering to pay $860 per $1,000 in principal amount. The purchase price came at a significant premium of ~10 cents on the dollar to its market price of 75.7 prior to the announcement. Having launched the offer, the perp has rallied by 8.6 points to trade at 84.7 currently.
The tender offer was launched to proactively manage its capital structure and will expire on December 16. Lee & Man said it will fund the buyback via available liquidity sources. The perp is callable in May 2024 and if not called, the coupon will reset to the initial spread of 328bp over the 5Y US Treasury yield, in addition to a 500bp coupon step-up.
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