China Maple Leaf mandatory redemption of 2.25% convertibles is Feb. 3

By Mary-Katherine Stinson

Lexington, Ky., Jan. 20 – China Maple Leaf Educational Systems Ltd. announced that the mandatory redemption of 40%, or $50 million, of its $125 million 2.25% convertible bonds due 2026 will occur on Feb. 3, according to a notice.

The first redemption will be executed on a pro-rata basis.

Accrued interest from Nov. 8 to the redemption date will also be paid.

As previously reported, China Maple Leaf was required to redeem the bonds on Aug. 15 due to a relevant event, but since it did not do so as of Aug. 16, a default event was triggered.

Notwithstanding the event of default, the company and holders of about 70% of the bonds entered into a standstill and consent solicitation support agreement on Aug. 15, which proposed a mandatory redemption with 40% of the bonds to be redeemed when the proposed changes are implemented and 25% nine months after that.

The company and the consenting holders entered into a second standstill agreement on Oct. 4. Under that updated proposal, the mandatory redemption of the 40% was mandated to take place seven business days following the date of the release notice of the amended and restated trust deed. The release notice date is Jan. 20.

Trading of the company’s shares and debt securities on the Hong Kong stock exchange had been suspended on May 3 and remains suspended.

China Maple Leaf is a China-based independent international school system.

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