Yida China payment on 6.95% notes expected after initial default

By Rebecca Melvin

New York, April 24 – Yida China Holdings Ltd. has defaulted on the remaining amount of its 6.95% senior notes due April 19, 2020 (ISIN: XS1598221338) outstanding but still expects to make payment on the notes after the transfer of relevant funds.

The relevant onshore funds have to be transferred offshore, the company said in a regulatory notice on Friday. The payment was due April 20.

As previously reported, the company tendered 82.38% of the $300 million issue in an exchange offer and consent solicitation that was completed and resulted in the cancelation of $247,146,000 of the notes.

The company had issued $224,899,000 of new notes pursuant to the offer on March 27. The new notes have a 10% coupon for the first six months, which steps up to 14% for the remaining term of the notes, which mature on March 27, 2022.

Previously, the company said its existing internal resources may be insufficient to repay the existing notes, its only offshore debt other than certain shareholder loans, and that it was conducting the exchange offer and consent solicitation to “improve its overall cash and financial condition, extend its debt maturity profile, strengthen its balance sheet and improve cash flow management.”

Yida China Holdings is a business park developer and operator.

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