China’s Zhongrong gives results in exchange offer for 2019 notes

By Rebecca Melvin

New York, May 10 – Zhongrong International Bond 2016 Ltd. announced the results of its offer to exchange up to $300 million of its 6.95% notes due June 21, 2019, guaranteed by Zhongrong International Holdings Ltd., for new dollar-denominated fixed-rate guaranteed notes due 2022.

It has exchanged $218,640,000 in existing notes for new notes at a one-to-one ratio. A total of $411,405,000 of the original $500 million principal amount of the existing notes had remained outstanding, which means that pending settlement of the exchange on May 20 there will be $192,765,000 of the 2019 securities remaining outstanding, according to the company’s announcement.

The new exchange notes will be issued at par with an interest rate of 7.6%, and they will be issued in addition to any new money notes proposed to be issued on the settlement date of May 17.

The company will also pay accrued interest to but excluding the settlement date.

The notes will be issued by Zhongrong International Bond 2019 Ltd. and guaranteed by Zhongrong International Holdings.

The purpose of the exchange offer is to refinance the existing notes as part of its ongoing capital management process to improve its debt structure, the announcement said.

Haitong International Securities Co. Ltd. (Attn: debt capital markets: +852 2848 4333) has been retained as dealer manager for the exchange offer, and D.F. King Ltd. (+44 20 7920 9700 or +852 3953 7230) is information and exchange agent.

Zhongrong International is a Hong Kong-based investment firm.

© 2015 Prospect News.
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