REXLot given more time to fund put options for 6%, 4.5% convertibles

By Angela McDaniels

Tacoma, Wash., June 3 – REXLot Holdings Ltd.’s bondholders have given it more time to close the asset sales needed to fund the put options exercised under its HK$330,315,000 outstanding 6% convertible bonds due 2016 and its HK$1,805,000,000 outstanding 4.5% convertible bonds due 2019, according to a company notice.

Bondholders voted on the extraordinary resolution at meetings on June 3 in Hong Kong.

The holders of 100% of the 6% convertibles and the holders of HK$1,787,900,000 of the 4.5% convertibles voted in favor of the extraordinary resolution.

The proposals will take effect when the supplemental trust deeds are executed, which is expected to occur June 7. The company also expects to pay the consent fee on June 7.

REXLot said on April 28 that a planned sale of its Multi Glory business had not yet closed and that, as a result, it lacked the cash needed to redeem the HK$1,848,415,000 of convertibles that have been put back to the company.

The company had previously obtained consents to delay settlement of a put option until April 29. The put bonds were originally to be redeemed on March 31.

This time, bondholders were asked to push back the redemption date to between June 29 and July 29 on the following terms, according to a company announcement:

• The company will make a partial payment of about 6.79% of the principal for all of the outstanding bonds plus accrued interest on June 22, or in the amount of HK$6,451.04 for each HK$100,000 principal amount of the 2016 bonds and in the amount of HK$129,020.78 for each HK$2 million principal amount of the 2019 bonds, along with accrued interest to but excluding June 22 in the amount of HK$1,330 for each HK$100,000 principal amount of the 2016 bonds and in the amount of HK$15,437.50 per HK$2 million principal amount of the 2019 bonds; and

• The redemption date for any put bonds will be delayed, and the put period end date will be extended to the date falling 30 days before the delayed redemption date and any put notice given between 30 days and 60 days.

Because the measure passed, the company will apply proceeds of any asset sale to redeem or repay the bonds, in whole or in part along with any accrued interest, on a pro rata and pari passu basis on the date given to bondholders of at least five days prior to the payment date and no later than 10 business days following closing of the asset sale.

The company offered a consent fee of 0.5% to holders who voted in favor of the proposals.

The company said on April 28 that the asset sale had not closed because the company is still waiting for approval from the People’s Republic of China.

The company said it expected to obtain approval within six weeks of April 29.

REXLot said that a default will occur under the bonds because it will not make the April 29 put payment.

Daiwa Capital Markets Hong Kong Ltd. was the consent solicitation agent.

Based in Hong Kong, REXLot provides machines and services to the Chinese lottery market.

© 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.