HONG KONG, April 1 (Reuters) - Yue Yuen Industrial (0551.HK) said on Thursday 1 April it had entered into agreement with Citibank NA for an unsecured loan of up to $300 million, raising capital to repay part of existing bank debt.

Yue Yuen Industrial, a supplier of sports shoes to Nike - Photo: Nike Hi Jack in black or white leather

The sports shoe maker said it would grant an option to Citi to require the company to issue up to 92.25 million shares at a price of $4.21 each (HK$32.72), about 21.2 percent premium to the previous close of HK$27 per share. The exercise period of the option is for five years.

Citi also intended to issue covered warrants with maturity of five years in an amount to be determined.

Trading in the shares, which was suspended on Wednesday 31 March, will resume on Thursday 1 April.

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A major shareholder of Yue Yuen is selling up to HK$772.5 million ($99.5 million) shares of the company, according to a term sheet seen on Wednesday 31 March. (Reporting by Donny Kwok; Editing by Ken Wills)