LUYE PHARMA (02186) plans to simultaneously repurchase $180 million of 2028 convertible bonds and issue USD-denominated convertible bonds.

LUYE PHARMA (02186) announced the issuance of $180 million 6.25% convertible bonds due in 2028 (bond stock code: 05818; ISIN: XS2645731220). According to the terms and conditions of the existing convertible bonds, the company or any of its subsidiaries may repurchase existing convertible bonds at any time and at any price in the open market or elsewhere, subject to compliance with applicable laws and regulations. The company now intends to repurchase existing convertible bonds in accordance with these terms and conditions. On June 3, 2026, the company entered into an agreement with the transaction manager for a simultaneous repurchase. The transaction manager has been appointed to assist the company in collecting expressions of interest from existing convertible bond holders who may be willing to sell their existing convertible bonds. Simultaneously with the simultaneous repurchase, the company plans to issue bonds to institutional investors. Underwriters have been appointed to coordinate the pricing of the proposed issuance of bonds. Once the terms of the bonds (including size, issue price, and other terms) are finalized, the underwriters will enter into a subscription agreement with the company for the proposed issuance of bonds. If the issuance of bonds is completed, the company intends to use the net proceeds from the issuance of bonds for refinancing existing debts (including providing funds for the simultaneous repurchase) and for general corporate purposes. The board of directors believes that through the simultaneous repurchase and issuance of bonds, the company will be able to extend the maturity of its debts. The proposed issuance of bonds also brings additional benefits: it will not cause immediate dilution to existing shareholders' equity; and if the bonds are converted into new shares, it can strengthen the company's capital base and benefit the company's long-term development.