China Overseas gets tenders for $482.2 million exchangeables due 2014

By Susanna Moon

Chicago, Jan. 13 - China Overseas Finance Investment (Cayman) Ltd. said investors had tendered $482.2 million of its outstanding $500 million of zero-coupon guaranteed exchangeable bonds due 2014.

The tender offer and consent solicitation expired at 5 a.m. ET on Jan. 10. The offer began Jan. 7.

The repurchase amount for each denomination will be $146,311.99, according to a company press release.

The tender offer is conditioned upon the extraordinary resolution being approved and the company raising up to $750 million of new bonds before the settlement date, the press release noted.

As previously announced, the company also solicited consent for proposed amendments to modify the terms and conditions of the bonds and related trust deed. Specifically, the company wants the option to cash settle and delist all of the bonds that are not repurchased through the tender offer following the completion of the offer.

The company is holding a bondholder meeting on Jan. 29 in Hong Kong to vote on the extraordinary resolution.

If the proposal is approved by bondholders, each consenting bondholder will be eligible to receive a consent fee equal to $250 per relevant denomination of the relevant bonds, as follows:

• For each $100,000 principal amount of bonds tendered for repurchase, the settlement amount will be the repurchase price plus, if the proposal is approved, the applicable consent fee; and

• For bondholders participating only in the consent solicitation, if the proposal is passed, the settlement amount for each $100,000 principal amount of bonds will be the consent fee.

The repurchase price will be paid to bondholders on or about Feb. 4 if conditions are met.

Citigroup Global Markets Ltd. (852 2501 2694, attn: Xiaochen Fan) and Goldman Sachs (Asia) LLC (852 2978 6996, attn: Bosco Hui, or gs-EBtenderoffer@gs.com) are the information agents.

The company is a subsidiary of Hong-Kong-based China Overseas Land & Investment Ltd., a construction and development company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.