Fung Choi redeems RMB 18 million bonds, gets more time to redeem rest

By Marisa Wong

Madison, Wis., Feb. 27 - Fung Choi Media Group Ltd. said it redeemed RMB 9 million of its dollar-settled zero-coupon convertible bonds due 2012 and RMB 9 million of its dollar-settled zero-coupon exchangeable bonds due 2012 on Feb. 24 and will redeem the remaining outstanding bonds on March 16.

The redemption price for the bonds redeemed on Feb. 24 was 128.14375. The redemption price for the bonds to be redeemed on March 16 will be 126.25.

The company previously announced that it redeemed RMB 9 million of the convertibles and RMB 9 million of the exchangeables at 126.25 on Jan. 11. The remaining outstanding bonds were to be redeemed by Feb. 27.

Due to the New Year holidays in China and the resulting delays in obtaining funds for the redemption, the company requested an extension from bondholders to redeem the bonds. The extension was granted on Monday.

For the upcoming redemption, the company will use a combination of internal resources and subsidiary Fung Choi Printing Ltd.'s HK$350 million one-year bridge loan, which was provided by Standard Chartered Bank (Hong Kong) Ltd.

The Hong Kong-based company originally issued RMB 190 million of the convertibles and RMB 190 million of the exchangeables.

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