China’s Binhai gets votes to amend 4.45% notes, settles consent fee

By Marisa Wong

Los Angeles, June 4 – Binhai Investment Co. Ltd. said it paid the consent fee to eligible bondholders on June 4 according to the terms of its consent solicitation to amend its $300 million of 4.45% notes due 2020.

Holders had voted in favor of amending the notes at a meeting held on May 26. A supplemental trust deed was executed on May 28.

As announced on April 24, the company offered a consent fee of $2 per $1,000 principal amount of notes for which consents were delivered.

As previously reported, TEDA HK entered into a share purchase agreement to sell Great Wall Gas 227,796,154 shares of Binhai. This would reduce TEDA’s shareholding to 35.43% from 60.19% and would bring Great Wall Gas’ shareholding to 29.99%.

Such a transaction would trigger a change-of-control event under the existing terms of the bonds and would breach the original letter of support.

The issuer solicited consents to reduce the 40% shareholding threshold to 30% in the terms and conditions and amend the reference to the issuer remaining a “subsidiary” of TEDA in the original letter of support to the issuer remaining a “consolidated subsidiary” of TEDA Investment.

Guotai Junan International (dcm.yijiang6@gtjas.com.hk) is the solicitation agent.

D.F. King Ltd. (+852 3953 7208, +44 20 7920 9700 or binhai@dfkingltd.com) is the information and tabulation agent.

Based in Hong Kong, the investment holding company is principally engaged in the sales of piped gas.

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