Central China Real Estate obtains needed consents to amend 10¾% notes

By Jennifer Chiou

New York, Dec. 15 – Central China Real Estate Ltd. announced that it has received consents from holders of a majority of its S$175 million of 10¾% senior notes due 2016, enough to amend the note indenture.

The solicitation ended on Dec. 15, and the record date was Dec. 1.

According to a filing with the Hong Kong Stock Exchange, the company was looking to bring the terms of the 10¾% notes closer in line with the terms of the S$200 million of 6½% senior notes due 2017, which it issued in May 2014.

Central China Real Estate said it intends to execute a supplemental indenture.

The terms of the 6½% notes are more flexible and enable the issuer to pursue additional business opportunities, the company previously stated.

The changes for the 10¾% notes include, among other things, amendments to the limitation on indebtedness and preferred stock as well as the limitation on restricted payments.

The company was offering a consent fee of S$2.50 per $1,000 principal amount.

DB Trustees (Hong Kong) Ltd. is the trustee.

D. F. King & Co., Inc. was the information and tabulation agent (44 20 7920 9700 or 212 269 5550; centralchina@dfkingltd.com; www.king-worldwide.com/centralchina).

DBS Bank Ltd. and Morgan Stanley & Co. International plc acted as the solicitation agents.

The investment holding company is based in Zhengzhou City, China. It primarily engages in the property development business in the Henan Province of China.

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