Country Garden starts cash tender offer for 2.5% convertible bonds

By Jennifer Chiou

New York, April 7 - Country Garden Holdings Co. Ltd. announced the start of a cash tender offer for its RMB 4,314,000,000 of dollar-settled 2.5% convertible bonds due 2013.

The company added that it has yet to determine how many bonds it will accept in the offer. Country Garden said that the amount is contingent on the net proceeds of an upcoming dollar-denominated issue of senior notes.

For each RMB 100,000 of tendered bonds, the company said it will pay the dollar equivalent of 111% plus accrued interest, less a 0.75% brokerage commission.

The offer will end at 11 a.m. ET on April 13.

It is contingent on a financing condition, which must be satisfied or waived by April 22.

Settlement is slated for April 27.

Goldman Sachs (Asia) LLC (852 2978-2634 or 852 2978-0183) and J.P. Morgan Securities Ltd. (852 2800-8817) are the dealer managers and tender agents.

The Hong Kong-based property developer issued the notes in February 2008.

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