China's ITC Properties buys back HK$265.5 million notes due 2011

By Marisa Wong

Madison, Wis., April 1 - ITC Properties Group Ltd. announced the results of the repurchase offer for its HK$906 million of outstanding 1% notes due June 15, 2011, which closed on March 31.

As of March 31, holders of HK$265.5 million principal amount of the notes tendered their acceptances to the repurchase offer.

Meanwhile, holders of HK$370.5 million have not accepted or been extended the repurchase offer. Loyal Concept, which holds HK$270 million of the notes, has conditionally accepted the offer.

As previously reported, the company plans to repurchase the notes due 2011 with proceeds from the issue of up to HK$966.6 million of 30-month 3¼% notes.

The purchase price for tendered notes is par plus a 10% premium. Holders will also receive accrued interest up to the issue date of the new notes.

ITC said its board of directors has decided to issue HK$292.05 million of new notes to holders who have unconditionally accepted the repurchase offer.

If certain conditions are fulfilled, Loyal Concept will receive new notes in the redemption amount of HK$297 million, and the total amount of new notes to be issued will be HK$589.05 million.

The company said it plans to redeem the remaining notes for which the repurchase offer has not been accepted in cash.

ITC is a Hong Kong-based property development and investment company.

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