China Forestry gets consents to amend 10¼% senior notes, extends offer

By Susanna Moon

Chicago, Dec. 23 - China Forestry Holdings Co., Ltd. said it extended the tender offer for its outstanding 10¼% senior notes due 2015 by another month to 11:59 p.m. ET on Jan. 22.

As of 11:59 p.m. ET on Dec. 20, the original expiration date, holders had tendered $83,377,000 principal amount, or 53.7%, of the outstanding notes not held by the company.

The consents received so far are enough to approve the proposed amendments to the notes, which would eliminate most of the restrictive covenants and other related provisions including events of default, according to a company press release.

The company previously said it was obtaining financing and that the tender offer could be extended until that financing was completed. The tender offer began on Nov. 22.

As previously announced, holders who tender their notes will receive $425, plus accrued interest, for each $1,000 principal amount of notes accepted for purchase.

Holders who delivered their consents to the proposed amendments by Dec. 6, the early consent date, will receive an early consent payment of $7.50 per $1,000 of notes.

Holders may not tender their notes without delivering consents.

The company needed consents from holders of a majority of the notes in order to amend the notes.

The tender offer and consent solicitation are conditioned on the company receiving tenders for at least 80% of the outstanding notes, the execution of a supplemental indenture effecting the proposed amendments and completion of financing to fund the tender offer.

The company said on Nov. 29 that it amended its tender offer so that, effective Nov. 26, tendered notes and delivered consents may be withdrawn or revoked at any time by the end of the offer. Before that, the offer only stated that notes could be withdrawn prior to the expiration date.

Bondholder Communications Group, LLC (212 809-2663 or +44 20 7382-4580) is the information and tender agent.

China Forestry originally issued $300 million of the senior notes with a 7¾% coupon in November 2010. Under a tender offer in August 2011, the company purchased $120 million of the notes and increased the coupon for the remaining outstanding notes to 10¼%.

As of Nov. 22, the total outstanding principal amount of the 10¼% notes was $180 million, $25 million of which was held by the company as a result of open market purchases.

The forest resources and timber log processing company is based in Hong Kong.

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