China South City gets consents to amend $400 million 8¼% notes

By Marisa Wong

Morgantown, W.Va., April 1 – China South City Holdings Ltd. said it obtained the necessary consents to amend the indenture governing its $400 million of 8¼% notes due 2019.

The consent solicitation began on March 16 and expired on March 31. A supplemental indenture effecting the proposed changes took effect on Friday.

The company said it will pay consent fees as soon as possible.

The amendments “enable the company to become more adaptive to the fast-changing competition landscape, increase the flexibility of the company to implement business plans in the future and bring the terms of the notes more in line with the terms of senior notes issued by comparable issuers in the market,” according to a prior company notice.

The company sought to amend through a single proposal terms relating to indebtedness, restricted payments, restructuring and spinoff, non-guarantor subsidiaries, asset sales, affiliate transactions and events of default, as well as various definitions.

Holders of a majority of the notes had to give their consents in order for the proposal to pass.

The company offered to pay a consent fee of $4.50 for each $1,000 principal amount.

D.F. King Ltd. (852 3953-7230, 44 20 7920 9700 or ChinaSouthCity@dfkingltd.com) is the information and tabulation agent.

Merrill Lynch Far East Ltd., Citigroup Global Markets Ltd. and the Hongkong and Shanghai Banking Corp. Ltd. are the solicitation agents.

Based in Hong Kong, China South City develops and operates large-scale, integrated logistics and trade centers in China.

© 2015 Prospect News.
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