China's Global Bio-Chem settles tenders and consents for 7% bonds

By Marisa Wong

Madison, Wis., Dec. 11 - Global Bio-Chem Technology Group Co. Ltd. said it settled the previously announced tender offer and consent solicitation for its RMB 450 million of 7% guaranteed bonds due 2014 on Dec. 10.

The company purchased and cancelled RMB 414.6 million of tendered bonds.

The tender offer and consent solicitation began on Nov. 8.

As reported, the company sought consents to waive bondholder and trustee rights in respect of all breaches and events of defaults under the terms and conditions of the bonds arising from a breach or non-compliance of certain financial covenants and to amend some terms and conditions of the bonds. Global Bio-Chem said that the consent solicitation and tender offer would provide the company with increased operating and financial flexibility.

The company entered into a second supplemental trust deed amending the terms of the bonds on Monday.

The company paid RMB 10,010 per RMB 10,000 principal amount of bonds tendered by the early deadline, 4 a.m. ET on Nov. 22. That amount included an early consent fee of RMB 5 per RMB 10,000 of bonds.

Bonds tendered after the early deadline but before the offer deadline, 4 a.m. ET on Nov. 29, were not eligible for the RMB 5 early consent fee.

The company also paid accrued interest up to but excluding the settlement date.

Bondholders were able to participate in the consent solicitation without tendering their bonds. The payment per RMB 10,000 of bonds was RMB 10 for consents given by the early deadline and RMB 5 for consents given after the early deadline but before the expiration date.

A bondholder meeting was scheduled for Nov. 30 to pass an extraordinary resolution that would amend the terms and waive bondholder and trustee rights. That resolution passed, according to the latest company announcement.

As of Dec. 11, RMB 35.4 million principal amount of the bonds remains outstanding.

HSBC was the dealer manager and tender and tabulation agent.

Global Bio-Chem is a Hong Kong-based manufacturer and seller of corn-related products.

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