China’s Xinyuan gets more flexibility after redeeming notes due 2019

By Devika Patel

Knoxville, Tenn., Aug. 11 – Xinyuan Real Estate Co., Ltd. will see greater financial flexibility and be better able to develop its projects after redeeming its $200 million of 13% senior notes due 2019 on July 10.

“Recently, we announced the completion of the early redemption of the 13% senior notes due 2019,” chief financial officer Helen Zhang said on the company’s second quarter earnings conference call on Friday.

“The refinancing improved our debt structure and allowed us greater flexibility to continue executing our real estate development projects,” Zhang added.

The company’s top executive echoed Zhang’s comments.

“Recently, we completed the early redemption of [our] 13% senior notes due 2019,” chief executive officer Lizhou Zhang said on the call.

“This lowers our debt levels and allows us more flexibility to develop our projects,” the CEO added.

As of June 30, the company’s cash and cash equivalents were $1,276,800,000, up from $1,245,900,000 on March 31.

Total outstanding debt was $2,647,800,000, which reflected an increase of $320.7 million compared to $2,327,100,000 at the end of the first quarter of 2017.

On June 8, Xinyuan said it would redeem its $200 million of 13% notes on July 10.

The company paid 106.5 plus accrued interest up to but excluding the redemption date.

Funding came from $300 million of 7ľ% senior notes due 2021 that were issued on Feb. 21.

Beijing-based Xinyuan Real Estate is a real estate developer and property manager in China and other countries.

© 2015 Prospect News.
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