Zensun offers to swap 12.8% notes due 2021, plans additional new notes

By Rebecca Melvin

Concord, N.H., Aug. 31 – China’s Zensun Enterprises Ltd. announced an offer to exchange any and all of its outstanding 12.8% senior notes due 2021 (ISIN: XS2051656739) for new notes.

The company is also offering to sell additional new notes under a separate offering. Completion of the new issuance is subject to market conditions, according to a regulatory notice.

Under the Regulation S exchange offer, which was launched on Tuesday and expires at 10 a.m. ET on Sept. 7, each $1,000 principal amount of outstanding notes validly tendered will be exchanged for $1,000 principal amount of new notes plus accrued interest and cash in lieu of any fractional amount of new notes.

The new notes will have a two-year maturity and minimum interest rate of 12½%. The final interest rate is expected to be set at pricing of the concurrent new issuance.

The new notes (expected rating: B3) will be guaranteed by parent Zensun Group Ltd. The proceeds will be used to repurchase existing medium- to long-term offshore debt that becomes due within one year in addition to refinancing the existing notes.

Guotai Junan International, Bocom International, CCB International and Haitong International are joint global coordinators, joint bookrunners and joint lead managers in connection with the new issue.

Guotai Junan International, Bocom International and Haitong International are the dealer managers of the exchange offer.

D.F. King (44 20 7920 9700, 852 3953 7231, zensun@dfkingltd.com) is information and exchange agent of the exchange offer.

Settlement will occur on Sept. 13, and listing of the new notes on the Hong Kong stock exchange is expected to occur on Sept. 14.

Zensun is the largest residential property developer in Zhengzhou.

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