Yida China receives consents from 92% of 2022 noteholders

Chicago, March 8 – Yida China Holdings Ltd. announced the results of its consent solicitation in respect of its senior notes due 2022 (ISIN: XS2130508000), according to an announcement.

The company received consents from holders of over 92% of the aggregate principal amount of outstanding notes, enough to effect the proposed waivers and amendments to the indenture.

The deadline for consents was 11 a.m. ET on March 5.

As previously reported, the company was seeking a waiver for an event of default based on a judgment against the company regarding the notes and the failure of the company to pay within 90 days of the court order.

On Oct. 20, a judgment was made against the company for $108.8 million regarding a put option price by the claimant and interest up to the date of the award of $84.1 million plus the claimant’s legal costs of $6.7 million and the cost of arbitration of around HK$9.6 million.

The company failed to pay this within the 90 days, constituting an event of default on the notes.

Additionally, the company was seeking a waiver of obligation to settle payment of the 2022 notes’ put option.

Under the indenture of the 2022 notes, holders were able to exercise their put option by submitting a repurchase to the paying agent before the put option settlement date of March 8.

Some noteholders had already delivered their repurchase notices before lapse of the deadline on Feb. 21.

The company was seeking a waiver to settle payments of the notes under the put option so that they would not have to repurchase the notes at par plus interest to the put option settlement date of March 8.

Additionally, the company wanted to lower the interest rate to 12% from 14% from March 27 until the maturity of the notes.

And, if the offer was successful, the company would provide for the repayment of portions of the principal amount of the outstanding 2022 notes prior to the maturity date.

Funding for the repayments would could from internal resources, mainly including cash flow from sales of properties in the ordinary course of business as well as potential asset disposals should suitable opportunities arise.

Noteholders who delivered valid consents by the deadline will receive $20 per $1,000 of notes.

The consent fee was conditioned upon valid consents being received from noteholders representing at least 75% of the outstanding principal amount of the notes.

The consent fee is expected to be paid on March 11.

Morrow Sodali Ltd. is the information and tabulation agent (+44 20 8089 3287, +852 2319 4130, Yida@investor.morrowsodali.com, https://bonds.morrowsodali.com/Yida).

Admiralty Harbour Capital Ltd. is the solicitation agent (yida_enquiries@ahfghk.com).

The company is a business park developer and operator in China with headquarters in Shanghai.

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