China’s Sichuan Railway 3.8% bonds will list Shudao as issuer

Chicago, Sept. 7 – Sichuan Railway Investment Group Co., Ltd. announced that the $300 million 3.8% bonds due 2022 will have a new stock short name on the Hong Kong Exchange starting Sept. 8, according to an announcement.

The announcement is a furtherance of the consent solicitation which started April 16.

The consent solicitation was designed to approve substituting the amalgamated company as principal debtor in place of the issuer.

The issuer announced that the extraordinary resolution approving the substitution passed at a meeting held on May 10, with 96.93% of total votes cast from eligible bondholders.

The consent fee was paid on May 24.

The new issuer, the amalgamated company, is Shudao Investment Group Co., Ltd.

As reported before, a consent fee of 0.04% of the principal amount of the bonds, or $0.40 per $1,000 principal amount of bonds, was to be paid to holders subject to a vote in favor of the extraordinary resolution before 11 a.m. ET on April 26.

A fee of 0.02% of the principal amount of bonds was to be paid to holders that deliver consents after April 26 but before 11 a.m. ET on May 5.

The company was merging with Sichuan Transportation Investment Group Corp. Ltd. to form a single company as mandated by the Sichuan Provincial Party Committee and the Sichuan Provincial Government.

The incorporation of Shudao and the closing of the amalgamation was announced on May 28.

Both companies were 100% beneficially owned by Sichuan Development (Holding) Co., Ltd.

The April 2 agreement was expected to enhance resource allocation, upgrade the two companies into a conglomerate, and contribute to the development and transformation of the transport infrastructure in Sichuan Province.

The amalgamation will not have a material adverse impact on the ability of the issuer to repay its existing debts, including the bonds, the company said.

Bank of China and China International Capital Corp. are solicitation agents for the consent solicitation, and D.F. King Ltd. (https://sites.dfkingltd.com/sichuanrailway) is the information and tabulation agent.

The state-owned company is involved in the investment, construction and operation of national and provincial railways and highways.

© 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.