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CDC affiliate buys $36.8 million of 3.75% exchangeable notes at discount from noteholder
By Devika Patel
Knoxville, Tenn., April 22 - CDC Corp. said an affiliate of the company reached an agreement with the largest holder of the company's 3.75% senior exchangeable convertible notes due 2011 to purchase $36.8 million of the notes at less than par.
With this purchase, the company has acquired $124.8 million, or 74%, of its $168 million of notes from 10 of the 11 separate noteholders.
CDC said it plans to continue discussions about early purchases of outstanding notes with the remaining noteholders.
"By using a combination of our own internal cash, cash generated from operations and refinancing, we have been able to purchase almost $125 million in face value of our notes at an average price that is a discount to par value, with no dilution of shareholder equity as a result of these transactions," said CDC chief executive officer Peter Yip.
"As we have stated previously, we believe these negotiated purchases of notes below par value are fair for both parties in light of current overall economic conditions."
CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services.
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