REXLot seeks to further delay maturity of 6% bonds, put option dates

By Marisa Wong

Morgantown, W.Va., Aug. 2 – REXLot Holdings Ltd. is soliciting consents from holders of its 6% convertible bonds due 2016 and 4.5% convertible bonds due 2019. The company is seeking bondholders’ consent to a proposal that would give it more time to complete a previously announced disposal and obtain sufficient offshore cash resources to redeem put bonds.

Specifically, the company is proposing the following:

• To make a partial payment of principal for all of the bonds on Sept. 30 in the amount of HK$15,000 for each HK$88,548.96 outstanding principal amount of 2016 bonds and HK$300,000 for each HK$1,770,979.22 outstanding principal amount of 2019 bonds. The partial payment of principal will be paid together with interest accrued to but excluding Sept. 30 in the amount of HK$29.52 for each HK$88,548.96 of 2016 bonds and HK$21,694.50 for each HK$1,770,979.22 of 2019 bonds;

• To delay the maturity date of its 2016 bonds to Feb. 28, 2017 from Sept. 28, 2016; and

• To extend the redemption date for any put bonds to Jan. 28, provided that any bondholder who has given a put notice may withdraw the notice prior to Jan. 28 and any put notice may be given, and may only be given, by any bondholders who has previously given and withdrawn a put notice from Dec. 28 to and including Jan. 28.

Holders will vote on the proposals at separate bondholders’ meetings on Sept. 9.

The company is offering bondholders who vote in favor of the proposals a 0.75% consent fee.

The company had previously solicited consents to similar proposals. Bondholders had agreed to push back the redemption date to July 29, as reported.

On Tuesday, the company said that because the disposal has not been completed as of July 29 and because it did not have sufficient cash to fund the redemption of put bonds on July 29, an event of default occurred under both series of bonds.

As a result, the company is asking for further extensions.

Daiwa Capital Markets Hong Kong Ltd. is the solicitation agent.

Based in Hong Kong, REXLot provides machines and services to the Chinese lottery market.

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