China Oriental tenders, solicits consents for 7% notes and 8% notes

By Jennifer Chiou

New York, Feb. 9 – China Oriental Group Co. Ltd. announced an offer to repurchase its 7% senior notes due 2017 and its 8% senior notes due 2015. The company is also soliciting consents for proposed amendments to the notes.

The offer will expire at 5 p.m. ET on March 9.

For each 1,000 principal amount, the company is offering $950 for the 8% notes and $840 for the 7% notes. The repurchase prices include a $90.00 early tender premium for the 8% notes and a $60.00 early tender premium for the 7% notes for those who tender prior to 5 p.m. ET on Feb. 23, the early tender deadline.

The company will pay accrued interest for notes accepted for repurchase

China Oriental said that it is looking to acquire the outstanding notes in order to eliminate substantially all of the restrictive covenants and modify certain of the events of default contained in the indentures.

The company said that there is a financing condition. It is seeking valid tenders from holders of at least 75% of each series of notes as well as consents from holders of at least a majority of each series.

As of Feb. 9, the outstanding aggregate principal amount of the 8% notes is $482,183,000, including $4.4 million held by the company and $7 million held by Han Jingyuan, the chairman and chief executive officer of the company.

The outstanding amount of 7% notes is $204,635,000, including $300,000 principal amount held by China Oriental and $4.4 million principal amount held by the CEO, who noted that he plans to tender all notes he holds in both series.

Deutsche Bank AG, Singapore Branch is the dealer manager, and Lucid Issuer Services Ltd. is the information and tender agent.

China Oriental is an iron and steel producer is based in Hong Kong.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.