Modern Land (China) seeks consents to extend 12.85% notes due 2021

By Marisa Wong

Los Angeles, Oct. 12 – Modern Land (China) Co., Ltd. began a solicitation of consents to some proposed amendments to its 12.85% senior notes due 2021 (ISIN: XS1986632716), according to a company announcement on Monday.

As of Oct. 11, there is $250,002,000 principal amount outstanding and set to mature on Oct. 25, 2021.

The main purpose of the consent solicitation is to obtain the needed consents to amend the indenture governing the notes to extend the maturity date and to improve the company’s liquidity and cash flow management and to avoid any potential payment default under the notes.

Specifically, the company is seeking to extend the maturity date to Jan. 25, 2022.

The company is also proposing to add an optional redemption to redeem the notes, in whole or in part, at par plus accrued interest at any time on or after Oct. 25 and to shorten the notice period to not less than seven days and no more than 30 days from not less than 30 days and no more than 60 days.

In addition, the company is asking holders to approve a reduction of the principal amount outstanding through a redemption of $87.5 million of the notes, or 35% of the outstanding amount, on Oct. 25.

The consent solicitation will expire at noon ET on Oct. 20.

Holders who are non-U.S. persons located outside the United States or some fiduciaries holding accounts for the benefit of non-U.S. persons outside the United States are eligible to participate.

To take effect, the proposals require consents from holders of at least 90% of the outstanding principal amount.

If the consent solicitation is successful, the company will pay a consent fee of $1.00 for each $1,000 principal amount to all holders, including non-consenting holders and holders who are not eligible to participate in the solicitation.

Guotai Junan Securities (Hong Kong) Ltd. (+852 2509 5342, dcm.reunion@gtjas.com.hk) is the solicitation agent.

D.F. King Ltd. (+852 3953 7208, +44 20 7920 9700, modernland@dfkingltd.com) is the information and tabulation agent.

The Beijing-based property developer is focused on the development of green, energy-saving and eco-friendly residences in China.

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