China’s Evergrande completes redemption of $1.35 billion 13% notes

By Toni Weeks

San Luis Obispo, Calif., Dec. 18 – Evergrande Real Estate Group Ltd. said it has completed the redemption of all $1.35 billion of its 13% senior notes due 2015 on Dec. 18.

The notes were redeemed on Dec. 18 at par plus the applicable premium of $17,483,709.50 and accrued interest per each $1,000 principal amount of notes of $50.92, for a total redemption price of $1,436,225,709.

The applicable premium was calculated as the greater of (a) 1% of the principal amount and (b) the excess of (i) the present value at the redemption date of 100% of the principal amount, plus all required remaining scheduled interest payments due through Jan. 27, discounted at the adjusted Treasury rate plus 100 basis points, over (ii) the principal amount on the redemption date.

The company previously said it would use cash on hand to pay for the early redemption.

The real estate developer is based in Guangzhou, China.

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