S&P rates Franshion Brilliant notes BBB-

S&P said it assigned a BBB- long-term issue rating to a proposed issuance of dollar-denominated offshore senior unsecured notes by Franshion Brilliant Ltd.

The notes are guaranteed by Franshion's parent company, China Jinmao Holdings Group Ltd., the agency noted.

S&P said it views the exchange as a measure of active debt management by China Jinmao, given the remaining maturity is still around two years and the exchange consideration is materially above par.

The new senior notes will be executed with a concurrent exchange offer for China Jinmao's outstanding 2021 due senior notes with a 6¾% coupon, the agency said.

Holders of the existing 2021 notes will receive the newly issued notes at a consideration of 107% on the par, S&P said, and the exchanged notes and newly subscribed notes will be combined into a single series.

The agency said it expects the new notes to have a more favorable coupon rate and this transaction should help China Jinmao to reduce future interest expenses and extend its debt-maturity profile.

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