Yestar Healthcare extends consent fee deadline for 6.9% noteholders

By Marisa Wong

Los Angeles, Oct. 20 – Yestar Healthcare Holdings Co. Ltd. said it is extending the deadline for holders of its $200 million 6.9% senior notes due Sept. 15, 2021 to receive a cash consent fee in connection with a new restructuring support agreement.

The purpose of the extension is to encourage more noteholders to accede to the new restructuring support agreement and support the proposed restructuring, according to a company announcement.

The consent fee deadline has been extended to 8 a.m. ET on Dec. 1 from 5 a.m. ET on Oct. 20.

As of 4 a.m. ET on Oct. 20, holders of $166,679,000, or 89.5%, of the $186,323,000 outstanding principal amount of the notes have entered into or acceded to the new restructuring support agreement.

The original principal amount was $200 million, but the company repurchased on market and canceled some of the notes in 2021.

The company announced the proposed offshored debt restructuring on Oct. 6. The new agreement had the support of holders of more than 45% of the outstanding principal amount.

A previous restructuring support agreement had automatically terminated on Sept. 15, the original longstop date.

The proposed restructuring calls for an issuance of new notes on the effective date in a principal amount that would be equal to the principal amount of the existing notes plus accrued interest.

The new notes would have a five-year tenor and an increased 9˝% coupon.

There would be a required redemption at par plus accrued interest of 5% of the original notes by the end of the first year, 15% of the original notes by the end of the second year, 30% of the original notes by the end of the third year and 45% of the original notes by the end of the fourth year.

The notes would not otherwise be callable until Sept. 15, 2024, at which time they would become callable at 102, then at 104 beginning Sept. 15, 2025 and at 106.5 at maturity. The company previously noted that the redemption premium would also be an improvement in comparison to the existing redemption premium.

There would be a mandatory prepayment at par with 35% of the cash proceeds of any equity issuance, in the event of such an issuance.

The new restructuring support agreement has a longstop date of Dec. 31. The proposed restructuring and related scheme of arrangement in the Cayman Islands must be implemented by that date.

Consenting noteholders must agree to vote in favor of the Cayman scheme in person or by proxy at the scheme meeting.

The consent fee payable to each eligible noteholder will equal that holder’s pro rata share of $11.84 million.

The Cayman scheme requires support from holders of at least 75% of the outstanding principal amount of notes.

D.F. King Ltd. (+44 20 7920 970, +852 3953 7208 or yestar@dfkingltd.com) is the information agent.

Yestar is a Shanghai-based supplier of medical consumables for the in vitro diagnostic market and a manufacturer and distributor of medical imaging products.

© 2015 Prospect News.
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