Fufeng accepts for repurchase RMB 747.8 million of 4.5% convertibles

By Marisa Wong

Madison, Wis., Nov. 26 - Fufeng Group Ltd. said that holders tendered RMB 747.8 million, or 80.5%, of its RMB 929 million of outstanding 4.5% dollar-settled convertible bonds due 2015 as of 10:59 a.m. ET on Nov. 22, the expiration of its previously announced cash tender offer.

The company said it accepted for repurchase all of the tendered bonds.

Holders will receive for each RMB 100,000 principal amount of bonds a tender consideration of RMB 100,737.50, which includes accrued interest of RMB 737.50. As noted, the purchase price was determined through a modified Dutch auction procedure.

The tender consideration will be paid in dollars, resulting in a cash payment of $16,010.92 per RMB 100,000 of bonds repurchased. The total repurchase amount is $119,729,652.07.

Settlement is expected to occur on Nov. 30.

The offer, which began on Nov. 12, will be funded with proceeds from a loan facility.

Deutsche Bank was the dealer manager and tender agent. Standard Chartered Bank was the financial adviser.

The Jinan, Shandong, China-based company issued RMB 820 million of the convertibles in March 2010 and an additional RMB 205 million of the bonds in April 2010 from a greenshoe exercise and recently repurchased RMB 96 million of the bonds in over-the-counter transactions.

Following the tender offer, RMB 181.2 million of the bonds will remain outstanding.

Fufeng manufactures bio-products, including monosodium glutamate (MSG), xanthan gum and fertilizer.

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