China’s Redco offers to purchase for cash 9 7/8% notes due 2021

By Taylor Fox

New York, Nov. 10 – Redco Properties Group Ltd. has begun an offer to purchase for cash its outstanding 9 7/8% senior notes due 2021 (ISIN: XS1989092116), according to a company announcement.

The notes will be repurchased at a price of $1,010 per $1,000 of notes, plus interest.

The company will accept tendered notes up to a maximum acceptance amount, which will be the lower of the $180 million outstanding amount of the 2021 notes and the amount of new notes to be issued under a concurrent offering.

The tender offer is conditioned on the new money issuance.

The company plans to announce pricing of the new notes and the tender cap on Tuesday.

The offer will expire at 11 a.m. ET on Nov. 18.

If the amount of 2021 notes validly tendered is greater than the maximum acceptance amount, Redco will accept tenders of 2021 notes for purchase on a pro rata basis such that the amount of 2021 notes accepted for purchase is no greater than the maximum acceptance amount.

In the event of any such proration, Redco will round downward, if necessary, to ensure all purchases of the 2021 notes will be in a minimum principal amount of $200,000 and integral multiples of $1,000 in excess of that.

The settlement date is expected for Nov. 20.

The offer is being made as part of the company’s policy to actively manage its balance sheet liabilities and optimize its debt structure.

Redco intends to finance the offer with the proceeds from internal funding and the concurrent new money issuance.

Credit Suisse (list.redcolm@credit-suisse.com) is the dealer manager, and Morrow Sodali Ltd. (+44 208 089 3287, +852 2158 8405; redco@investor.morrowsodali.com) is the information and tender agent.

Redco is a residential and commercial property developer based in Shenzhen, China.

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