Chinese online entertainment company Shanda (SNDA) announced its intention to offer USD130 million of convertible senior notes due 2011 through a private offering to institutional buyers in the United States.
Shanda also expects to grant the initial purchasers a 13-day option to purchase up to an additional USD20 million aggregate principal amount of the notes.
The company intends to use the entire net proceeds of the offering, including the net proceeds from any exercise of the over-allotment option, together with cash on hand, to repurchase a variable number of its ADSs. The company therefore also approved a plan to repurchase up to USD200 million worth of its outstanding American Depositary Shares representing the ordinary shares of the company from time to time over the next 12 months.
"The decision to initiate the share repurchase program illustrates the confidence we have in the long-term value of our company, and reiterates our commitment to maximizing shareholder returns," said Tianqiao Chen, Shanda's CEO.
