Country Garden buys back RMB 390 million more 2.5% convertible bonds

By Jennifer Chiou

New York, April 28 - Country Garden Holdings Co. Ltd. announced the repurchase of a further RMB 390 million of its dollar-settled 2.5% convertible bonds due 2013 in over-the-counter market transactions following its cash tender offer for the securities.

The settlement of the repurchased bonds will occur on May 3, with the bonds earmarked to be canceled.

On April 23, the company said that the financing condition for its previously wrapped tender offer for the then-outstanding RMB 4,314,000,000 of the convertibles had been met. The offer settled on Tuesday.

As already reported, the company said the maximum purchase amount was RMB 3,248,800,000, and the final purchase amount was RMB 780.7 million.

Following the offer and the repurchase, there will be RMB 3,143,300,000 principal amount of the convertibles outstanding.

The tender was subject to the satisfaction or waiver of the financing condition by 8 p.m. ET on April 23. Country Garden previously said the purchase amount was contingent on the proceeds of a dollar-denominated issue of senior notes.

For each RMB 100,000 of tendered bonds, the company paid the dollar equivalent of 111% plus accrued interest, less a 0.75% brokerage commission, in the offer that expired at 11 a.m. ET on April 13. It began on April 7.

Goldman Sachs (Asia) LLC (852 2978-2634 or 852 2978-0183) and J.P. Morgan Securities Ltd. (852 2800-8817) were the dealer managers and tender agents.

The Hong Kong-based property developer issued the notes in February 2008.

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