Sunkwan to swap $139.2 million 12¾% notes, cancels new-money issue

By Rebecca Melvin

Concord, N.H., Dec. 22 – China’s Sunkwan Properties Group Ltd. announced results of its Dec. 14 offer to exchange any and all of its $185 million 12¾% senior notes due 2022 (ISIN: XS2157244174), and canceled plans for a concurrent new-money issuance, according to a company announcement.

As of 11 a.m. ET on Dec. 28, $139.2 million of the existing notes, representing 75.24% of the total principal amount, had been validly tendered and accepted under the exchange offer.

The original notes are being exchanged for new notes with a tenor of 364 days plus accrued interest and a minimum yield of 13½%.

The notes are callable at par plus a make-whole and accrued interest at any time prior to Jan. 2, 2023. Up to 35% of the exchange notes may also be redeemed with sales of common stock at 113.5 plus accrued interest.

Contrary to the company’s previous plan, no additional new notes will be issued.

Settlement of the exchange offer has been extended to Jan. 3 from Dec. 31. Listing of the exchanged notes on the Hong Kong Exchange is expected to occur on Jan. 4.

As previously reported, the company will not receive cash proceeds from the exchange.

The company mandated Haitong International Securities Co. Ltd. as dealer manager of the exchange offer and as manager of the additional issuance. It has also mandated D.F. King Ltd. (+44 20 7920 9700, +852 3953 7231 or sunkwan@dfkingltd.com) as information and exchange agent for the exchange offer.

The property developer focuses on the Yangtze River Delta Economic Region in China.

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