China’s Zensun gives exchange offer results for 12.8% notes due 2021

Chicago, Sept. 8 – China’s Zensun Enterprises Ltd. announced the results of its exchange offer for the 12.8% senior notes due 2021 (ISIN: XS2051656739), according to a notice.

As of the 11 a.m. ET deadline on Sept. 7, noteholders holding $142.42 million, or 42.01%, of the existing notes tendered their notes for exchange and had their notes accepted pursuant to the exchange offer.

Under the Regulation S exchange offer, 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.

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. As of the deadline, the new notes had not been sold.

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 is expected to 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.

© 2015 Prospect News.
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