Century tenders for $50 million 10¼% notes guaranteed by Indiabulls

By Susanna Moon

Chicago, Feb. 12 – Century Ltd. is tendering for up to $50 million maximum of its $175 million 10¼% senior notes due Nov. 12, 2019 guaranteed by Indiabulls Real Estate Ltd., the parent company.

Pricing for each $1,000 principal amount will be set using a modified Dutch auction, with a minimum purchase price of $930 and a maximum purchase price of $960, according to a company notice.

The minimum tender amount is $200,000 principal amount of notes.

The tender offer will end at 11 a.m. ET on Feb. 23.

The issuer also will pay accrued interest up to but excluding the settlement date of March 1.

Noteholders may submit one or more competitive offers, provided that the aggregate principal amount of the notes does not exceed the amount of notes that the holder has.

Competitive offers must specify

• The price per $1,000 principal amount that the holder would be willing to accept as the purchase price for the tender instruction, in increments of $1.00 above the minimum purchase price with any other amount rounded down to the nearest $1.00 increment above the minimum purchase price; and

• The principal amount of notes, in increments of $1,000, subject to the minimum denomination that the holder is tendering at that offer price.

For non-competitive offers, noteholders must specify the principal amount of notes in integral multiples of $1,000, subject to the minimum denomination.

Tender instructions that specify an offer price equal to or below the minimum purchase price will be treated as non-competitive offers. Tender instructions that specify an offer price of more than the maximum purchase price will be rejected.

The issuer said it will accept in order all non-competitive offers first, then all competitive offers with prices lower than the purchase price and finally all competitive offers that are equal to the purchase price will be accepted third, each subject to possible proration.

The offer is intended “to manage and better optimize” the issuer’s and the parent guarantor’s debt maturity and repayment schedule and also gives noteholders an opportunity to gain liquidity, the company said.

Deutsche Bank AG, Singapore Branch (+65 6423 5934, +44 (0) 207 545 8011 or liability.management@db.com) is the dealer manager. Lucid Issuer Services Ltd. (+ 44 20 7704 0880, David Shilson, indiabulls@lucid-is.com) is the tender agent.

The issuer said it reserves the right not to accept any tenders, not to purchase any notes or to modify any of the terms and conditions of the offer, including the maximum purchase amount.

As of Feb. 12, $70.25 million of notes were beneficially owned by the issuer and will not be tendered under the offer.

Indiabulls Housing Finance is a Mumbai-based housing finance company that provides home loans, loans against properties and commercial vehicle loans primarily to salaried and self-employed sectors in India.

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