Keen Start further postpones settlement for REXLot convertibles

By Marisa Wong

Morgantown, W.Va., Aug. 31 – REXLot Holdings Ltd. said that substantial shareholder Keen Start Ltd. is again extending the settlement date for its offer to purchase some of REXLot’s 6% convertible bonds originally due 2016 and extended to 2017 and 4.5% convertible bonds due 2019.

The settlement date for the offer had previously been extended to Sept. 7 from July 31 and, before that, from July 20, July 5 and June 28.

REXLot is negotiating and finalizing its fundraising plans. As a result, Keen Start and REXLot want to postpone closing of the buyback offer until the fundraising is concluded. The proposed fundraising is expected to take another two weeks, according to a company update on Thursday.

The new settlement date for the purchase of the convertible bonds will be five business days after REXLot makes an announcement on definitive fundraising plans.

As of Aug. 31, the amount of the put bonds remains at HK$563,214,096.19, the amount of the put bonds subject to redemption under the third anniversary put option is still HK$87,643,974.17, and the amount of the 2016 bonds excluding the put bonds for the 2016 bonds is unchanged at HK$1,451,059.

The offer is conditioned on the receipt of tenders for more than 75% of the outstanding principal amount of each series of convertibles. In July, REXLot said Keen Start already received e-mail confirmations from holders of more than 75% of each bond series. However, there were a number of delays to the actual tendering of the bonds, as previously disclosed.

As previously announced, Keen Start plans to purchase 75.01% of the 2016 convertibles and 75.05% of the 2019 convertibles. Keen Start is offering to purchase the convertibles at par plus accrued and default interest.

Before the launch of Keen Start’s buyback offer, REXLot announced that there were delays to its payment for convertible bonds put back to the company.

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

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