Yuzhou expects to default on 8˝% notes due 2024, other dollar notes

By Marisa Wong

Los Angeles, Feb. 23 – Yuzhou Group Holdings Co. Ltd. said it does not expect to make the upcoming payment due on its $500 million 8˝% senior notes due 2024 (ISIN: XS1954963580).

As previously disclosed, an event of default had already occurred under the 2024 notes, and all outstanding principal and accrued interest on those notes are due on their Feb. 26, 2024 maturity date.

As announced on Feb. 8, the company had entered into a restructuring support agreement with an ad hoc group of holders of the existing notes to support the implementation of a proposed restructuring of the company’s offshore debt, including the 2024 notes.

As a result, the company is not expecting to make the Feb. 26 payment.

Failure to make this payment, however, will constitute an event of default under the 2024 notes as well as the company’s other dollar-denominated notes.

The company’s other dollar-denominated notes include the following:

• $500 million 8 3/8% senior notes due 2024 (ISIN: XS2073593274);

• $400 million 7.7% senior notes due 2025 (ISIN: XS2121187962);

• $500 million 8.3% senior notes due 2025 (ISIN: XS2085045503);

• $645 million 7 3/8% senior notes due 2026 (ISIN: XS2100653778);

• $300 million 7.85% green senior notes due 2026 (ISIN: XS2215399317);

• $562 million 6.35% green senior notes due 2027 (ISIN: XS2277549155); and

• $300 million 5 3/8% senior perpetual securities (ISIN: XS1692346395).

Once the 2024 notes mature, they will be delisted from the Stock Exchange of Hong Kong Ltd.

After withdrawal of listing, holders requiring further information in relation to the 2024 notes may contact the company (ir@yuzhou-group.com) or its advisors, Alvarez & Marsal Corporate Finance Ltd. (ProjectYuzhou@alvarezandmarsal.com), BOCI Asia Ltd. (project.yzlm@bocigroup.com) and Haitong International Securities Co. Ltd. (project.yuzhou.lm@htisec.com).

Yuzhou is a property developer based in Shanghai and Shenzhen, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.