Keen Start to purchase REXLot 6%, 4.5% convertibles; 75% threshold met

By Marisa Wong

Morgantown, W.Va., June 1 – REXLot Holdings Ltd. said that substantial shareholder Keen Start Ltd. intends to purchase some of REXLot’s 6% convertible bonds originally due 2016 and extended to 2017 and 4.5% convertible bonds due 2019.

Subject to some conditions and withdrawal procedures, Keen Start is planning to purchase 75.01% of the 2016 bonds and 75.05% of the 2019 bonds.

Keen Start had launched an offer to purchase any and all of the outstanding bonds at par plus accrued and default interest, as previously announced.

The offer was conditioned on holders of each series tendering more than 75% of the outstanding principal amount of that series. Keen Start had received indications from 2016 and 2019 bondholders exceeding that threshold that they wished to participate in the offer, according to a Thursday announcement.

Some bondholders had previously exercised their put options under the bonds. REXLot said, if necessary, it will consent to the withdrawal of those put options so that the bondholders can participate in the Keen Start offer.

Based on the timing required for withdrawing those previous puts, Keen Start will extend the timeline of its offer to allow those withdrawal procedures to take place. As a result, Keen Start expects to settle its buyback on June 28.

As of June 1, the amount of convertibles putable because of a delisting was HK$563,214,096.19; the amount of bonds redeemable through a put option on the bonds’ third anniversary was HK$87,643,974.17; and the total amount of 2016 bonds outstanding, excluding the putable 2016 bonds, was HK$1,451,059.

According to previous announcements, there were delays to REXLot’s payment for convertible bonds put back to the company.

Sufficient offshore funds were available to make the payment for any put bonds, REXLot had said, but its bank required additional time “to go through certain internal procedures to effect payment.”

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

© 2015 Prospect News.
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