Convertible Bond Boom Grows as Trip.com Follows Alibaba
- Trip.com prices $1.3 billion convertible bonds due in 2029
- Tech firms including JD.com, Lenovo have made similar moves
Trip.com is offering a coupon of 0.5% to 1% on its notes and a 30%-50% conversion premium.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
There’s no let up in the rush by Chinese technology companies to issue convertible bonds, with online travel agency Trip.com now following industry giants such as Alibaba Group Holding Ltd. into the action.
Trip.com announced Tuesday an offering of $1.3 billion convertible senior notes due in 2029 to help repay debt, expand overseas and for working capital needs. To ease any dilution effect, the company plans to repurchase 6 million American depository shares for about $300 million at $50.16 each, the same as the latest close, according to a separate statement on the bond pricing Wednesday.