Hong Kong’s Yuexiu takes in tenders for $260.56 million 3¼% notes by Dutch auction

By Susanna Moon

Chicago, Aug. 9 – Yuexiu Property Co. Ltd. said investors had tendered $260,559,000 of its $350 million 3¼% notes due 2018 in the modified Dutch auction tender offer that ended at 11 a.m. ET on Aug. 5.

Yuexiu accepted for purchase all of the tendered notes at a price of $1,012.98 for each $1,000 principal amount using a repurchase yield of 2.334%, according to a company notice.

Pricing was set at 9 p.m. ET on Aug. 7 using the 5/8% U.S. Treasury due June 30, 2018 plus a repurchase spread of 160 basis points, which was the minimum repurchase spread. The maximum repurchase spread was 190 bps.

The company will also pay accrued interest.

After settlement on Aug. 12, there will be $89,441,000 of the notes left outstanding.

Yuexiu called the remaining notes for redemption on Aug. 15.

The company also had sought consents to amend the notes to insert a call option at par plus accrued interest and said that the measure had passed at the meeting held at 9 p.m. ET on Aug. 8.

As announced July 15, the company was tendering for the notes by modified Dutch auction and had planned to set the repurchase amount after the offer ended.

Noteholders could submit tenders by either a competitive offer or a non-competitive offer, and the minimum offer was $200,000 principal amount of notes.

In the offer, the company selected the highest repurchase spread that allowed purchasing the acceptance amount. No notes were to be purchased at offer spreads less than the repurchase spread.

Notes repurchased in the offer will be canceled.

For the consent solicitation, the early consent fee was $5.00 per $1,000 principal amount for consents given by 11 a.m. ET on July 29, the early consent date, and the regular consent fee was $2.50 per $1,000 notes for consents given afterward.

Noteholders could consent to the solicitation without tendering their notes.

Holders include Chong Hing Bank Ltd., a connected person of the company. Chong Hing Bank held $30 million principal amount of notes.

DBS Bank Ltd. (liabilitymgmt@dbs.com) is the structuring adviser. Chong Hing Bank Ltd. and DBS Bank Ltd. are the joint dealer managers. D.F. King Ltd. (+44 20 7920 9700, +852 3953 7230, yuexiu@dfkingltd.com or https://sites.dfkingltd.com/yuexiu/) is the tender and tabulation agent.

Yuexiu is a property developer based in Hong Kong.

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