China’s Hidili Industry seeks tenders, consents for up to $228 million 8 5/8% notes due 2015

By Toni Weeks

San Luis Obispo, Calif., Sept. 16 – Hidili Industry International Development Ltd. began a tender offer and consent solicitation for up to $228 million of its $400 million of outstanding 8 5/8% senior notes due 2015, according to a company notice.

The company is also soliciting consents from holders to eliminate substantially all of the restrictive covenants and some events of default and other provisions contained in the indenture as well as to waive any and all actual and potential defaults and events of default that have occurred or are continuing.

The company will pay $680 per $1,000 principal amount of notes. The amount includes a consent payment of $20 per $1,000 principal amount for notes tendered by the early tender deadline, 5 p.m. ET on Sept. 29. This is also the consent expiration date and the withdrawal deadline. Holders who tender their notes after the early tender deadline will not receive the consent payment.

The offer will expire at 11:59 p.m. on Oct. 14, with settlement to occur Oct. 21.

Holders who tender their notes must deliver consents, but holders may deliver consents without tendering their notes.

Notes must be tendered in minimum denominations of $100,000 principal amount and multiples of $1,000 thereafter.

If the company receives tenders for more than the maximum amount, it will scale the accepted notes on a pro rata basis.

The company said it will fund the tender offer with cash on hand and bank borrowings.

D.F. King & Co., Inc. (800 829-6554 or 212 269-5550, email: hidili@dfking.com/hidili; in London: 44 20 7920 9700) is the information and tender agent. The dealer manager is UBS AG, Hong Kong Branch (852 2971 6159 or ol-lm-Asia@ubs.com).

The coal and coke company is based in Panzhihua, China.

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