China's Shimao Property tightens talk on $500 million two-part notes

By Paul A. Harris

St. Louis, Nov. 20 - Shimao Property Holdings Ltd. revised the price talk on its $500 million two-part offering of senior notes (Baa3/BB+), an informed source told Prospect News on Monday.

The Shanghai-based real estate developer talked its 10-year fixed-rate notes at 8%, revised from the 8¼% area. Meanwhile Shimao talked its five-year floating-rate notes at Libor plus 195 to 200 basis points, revised from 200 to 225 bps.

Tranche sizes remain to be determined.

The source added that there is a slight chance that the deal could be upsized.

Pricing is expected on Tuesday.

Morgan Stanley and Goldman Sachs & Co. are leading the deal.

Proceeds will be used to finance the development of new projects including the acquisition of a new land bank. Proceeds will also be used to repay certain existing loans and to finance existing projects.

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