China’s Sichuan Railway Investment seeks consents to amend 3.8% notes due 2022

By Rebecca Melvin

Concord, N.H., April 16 – Sichuan Railway Investment Group Co., Ltd. is seeking consents from holders of its $300 million 3.8% bonds due 2022 to amend the bonds and implement certain waivers related to the company’s merger with another company, according to a notice.

Specifically, the consent solicitation would approve substituting the amalgamated company as principal debtor in place of the issuer.

A consent fee of 0.04% of the principal amount of the bonds, or $0.40 per $1,000 principal amount of bonds, will be paid to holders subject to a vote in favor of the extraordinary resolution before 11 a.m. ET on April 26.

A fee of 0.02% of the principal amount of bonds will be paid to holders that deliver consents after April 26 but before 11 a.m. ET on May 5.

The company is merging with Sichuan Transportation Investment Group Corp. Ltd. to form a single company as mandated by the Sichuan Provincial Party Committee and the Sichuan Provincial Government.

Both companies are 100% beneficially owned by Sichuan Development (Holding) Co., Ltd.

The April 2 agreement is expected to enhance resource allocation, upgrade the two companies into a conglomerate, and contribute to the development and transformation of the transport infrastructure in Sichuan Province.

The amalgamation will not have a material adverse impact on the ability of the issuer to repay its existing debts, including the bonds, the company said.

Bank of China and China International Capital Corp. are solicitation agents for the consent solicitation, and D.F. King Ltd. (https://sites.dfkingltd.com/sichuanrailway) is the information and tabulation agent.

The state-owned company is involved in the investment, construction and operation of national and provincial railways and highways.

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