China Shanshui launches offer to repurchase 7˝% and 8˝% senior notes

By Caroline Salls

Pittsburgh, Jan. 14 – China Shanshui Cement Group Ltd. launched its offer to repurchase $500 million of 7˝% senior notes due 2020 and the $28.88 million of outstanding 8˝% senior notes due 2016 on Thursday, according to a company news release.

China Shanshui said it will offer to purchase for cash any and all of the outstanding notes for a purchase price of $1,010 for each $1,000 in principal amount of notes validly tendered, which represents 101% of the total principal amount of the notes, plus unpaid interest and additional amounts.

The offer will expire at 5 p.m. ET on March 7. The settlement date for the buyback is expected to be March 14.

As previously reported, the company’s board unanimously voted to proceed with an offer related to the 2020 notes and received assurance form Tianrui Group Co. Ltd. that it will procure sufficient funds for China Shanshui to comply with its financial and other obligations in connection with the offer.

The offer is being made under the repurchase of notes upon a change-of-control provision of the notes indenture.

China Shanshui said the board believes that changes of control have occurred as a result of a voluntary cash general offer made by Asia Cement Corp. and China National Building Material Co. Ltd. (collectively, ACC-CNBM Group) on July 20, which caused the ACC-CNBM Group to be deemed the beneficial owner of more than 30% of the company’s voting shares, as well as the removal of Zhang Bin from his position as chairman of the board at an extraordinary general meeting held on Dec. 1.

The company said it has retained Bondholder Communications Group, LLC to act as tender agent in relation to the offer.

The cement manufacturing company is based in Jinan, China.

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