Guorui Properties extends offer to exchange 13½% notes to Jan. 20

By Rebecca Melvin

New York, Jan. 19 – China’s Guorui Properties Ltd. has extended its offer to exchange $455 million principal amount outstanding of 13½% senior notes due 2022 by two days and pushed out pricing of a new notes offering until Jan. 21, according to an announcement on Tuesday.

The new tender expiration is 11 a.m. ET on Jan. 20. It was initially set to expire at 11 a.m. ET on Jan. 18.

Under a separate offering memorandum, the company is also offering to sell additional new notes, which will be used to refinance the existing notes and for general corporate purposes.

As previously reported, holders will receive $1,077.041 of new notes and cash in lieu of any fractional amount of the new notes not issued for each $1,000 principal amount outstanding of existing notes validly tendered.

The interest rate of the new three-year notes is 14¼%. The new Regulation S notes are putable after 15 months at par plus accrued and unpaid interest.

The company said it is refinancing the existing notes to improve its debt structure, extend its debt maturity profile, strengthen its balance sheet and improve cash flow management.

Fitch Ratings Ltd., which rated the new notes B-, said the rating reflects uncertainty over the refinancing arrangement of the 2022 notes, which are putable in February. The rating agency also said that if the offshore debt is not successfully refinanced it will lead to a multiple-notch downgrade of Guorui ratings.

Haitong International is dealer manager of the exchange, and D.F. King is the information, tabulation and exchange agent. Haitong International is also acting as sole global coordinator, lead manager and bookrunner of the new money issuance.

The homebuilder is incorporated in the Cayman Islands under the name Glory Land Co. Ltd., and based in Beijing.

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