China’s Evergrande calls all 13% notes for early redemption on Dec. 18

By Marisa Wong

Madison, Wis., Nov. 17 – Evergrande Real Estate Group Ltd. said it will redeem in full its 13% senior notes due 2015 on Dec. 18.

The notes will be redeemed at par plus an applicable premium and accrued interest to the redemption date.

The applicable premium will be 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 amount of accrued interest to the redemption date for each $1,000 of notes will be $50.92.

As of Nov. 16, the principal amount outstanding was $1.35 billion.

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

The real estate developer is based in Guangzhou, China.

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