China Shanshui Cement reaches support deal to complete tender offer

By Caroline Salls

Pittsburgh, Sept. 21 – China Shanshui Cement Group Ltd. entered into a restructuring support agreement to complete the tender offer of its 7˝% senior notes due 2020, according to a news release.

The support agreement was reached with multiple holders of the 2020 notes.

As previously reported, the company launched a tender offer to repurchase the 2020 notes at 101% of par.

China Shanshui said a principal amount of $484.97 million of the notes were tendered, and the company repurchased $73.47 million of the tendered notes between June 2016 and October 2016.

On Aug. 6 and Aug. 30, China Shanshui entered into agreements to issue $531.6 million of convertible bonds to complete the tender offer, but minority shareholder Tianrui (International) Holding Co. Ltd. subsequently filed petitions seeking to wind up the company before the Grand Court of the Cayman Islands and the Court of First Instance of the High Court of the Hong Kong.

Tianrui also applied to the Grand Court of the Cayman Islands for appointment of joint provisional liquidators for China Shanshui.

Until the petitions and liquidator application are dismissed, the company said it cannot use the cash raised from the issuance of the convertible bonds to complete the tender offer.

Under the restructuring support agreement, China Shanshui and the consenting noteholders agreed to oppose the petitions and application, the company agreed to complete the tender offer at 101% of par plus interest through the payment date within 10 business days after the courts enter dismissal orders, and the consenting noteholders agreed not to enforce their rights under the 2020 notes indenture.

“The company is committed to keep the company’s promise to repurchase the 2020 notes,” chairman Chang Zhangli said in the release.

The company is represented by Latham & Watkins as legal counsel and Moelis & Co. as financial adviser.

China Shanshui is a cement manufacturing company based in Jinan, China.

© 2015 Prospect News.
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