China’s Yincheng terminates exchange offer, defaults on 12˝% notes

By Mary-Katherine Stinson

Lexington, Ky., March 17 – Yincheng International Holding Co., Ltd. terminated its offer to exchange its outstanding $95,965,000 13% senior notes due 2023 (ISIN: XS2454679239) for new notes, according to a notice.

All tendered notes will be returned.

As previously reported, the last extension of the exchange offer extended the expiration deadline beyond the March 7 maturity date of the existing notes.

As of March 17, the company has not paid the principal and interest on the existing notes due and payable on the maturity date. In addition, because of the non-payment, the holders of the company’s 12˝% senior notes due in September 2023 may demand early repayment subject to the conditions of the indenture governing the notes.

The company stated it was assessing the situation and seeking professional advice on how to resolve matters.

As previously reported, Yincheng was offering to exchange $1,000 of new 13% notes with a tenor of 364 days and capitalized interest for each $1,000 of existing notes. To capitalize the accrued interest for the existing notes, each $1 of accrued interest on the existing notes that were tendered and accepted would have been exchanged for $1 principal amount of new notes in lieu of cash.

The offer was set to expire around March 20.

Guotai Junan Securities (Hong Kong) Ltd. +852 2509 5342; dcm.yinchenglm@gtjas.com.hk) was the dealer manager for the exchange offer.

D.F. King Ltd. (+44 20 7920 9700, +852 3953 7231, yincheng@dfkingltd.com, https://sites.dfkingltd.com/yincheng) was the information and exchange agent.

The company also announced the results of its preliminary review of its unaudited consolidated management accounts. It said the company is expected to record a loss attributable to owners of the parent ranging from approximately RMB 800 million to approximately RMB 1.2 billion for 2022, citing changes in overall market conditions, the Covid-19 pandemic in China, the devaluation of the renminbi and the fair value loss of investment properties.

The Nanjing, China-based company offers development and sale of residential and commercial properties, leasing of investment properties and other real estate services.

© 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.