China’s Lerthai wants to keep notes outstanding, offers to settle puts at significant discount

By Marisa Wong

Morgantown, W.Va., Sept. 13 – LT Commercial Real Estate Ltd. (Lerthai) said it has issued a notice to holders of its notes due Oct. 10, 2017 that the consideration payable to noteholders who have exercised their put option will be 3% of par.

Payment of that consideration will be made on or prior to Oct. 5.

Under the original terms of the notes, the notes are putable at par plus accrued interest on Oct. 10, which is the second anniversary of the issue date.

However, having considered its current capital management strategies and the distribution of its onshore and offshore funds, the company has determined that it would be better to keep the notes outstanding until their maturity.

As a result, the company is settling any put notes at 3% of par. Assuming that all holders of the HK$249 million principal amount currently outstanding accept that offer, the maximum consideration payable would be HK$7.47 million.

Noteholders may withdraw their put option notices on or prior to Sept. 23.

The securities investment and finance company is based in Hong Kong.

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