Lenovo loses factoring facility from IBM, replaces with landmark securitization

Lenovo laptop
By Owen Sanderson
18 Dec 2019

Lenovo Group, one of the world’s largest computer and electronics makers, lost a long time financing partner when IBM decided to close its factoring operation for hardware equipment manufacturers in February, GlobalCapital can reveal. But Lenovo moved fast to replace this with one of the largest trade receivables securitizations ever signed. The $3bn deal included selling junior notes to three investors to maintain full off balance sheet treatment for the assets and debt.

The Chinese company, listed in Hong Kong, hired BNP Paribas and Citigroup to provide the securitization. BNPP also offered bridge financing. The new deal had to be structured and closed in less than six months, without any disruption to the crucial customer relationships Lenovo has with some ...

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