China Logistics seeks consents to amend 6.95% convertibles due 2024

By Marisa Wong

Los Angeles, Dec. 2 – China Logistics Property Holdings Co., Ltd. launched a consent solicitation relating to its HK$1,109,000,000 6.95% convertible bonds due 2042 (ISIN: XS1999871863), according to a company announcement.

The purpose of the solicitation is to seek bondholder consent to approve some proposed amendments and proposed waivers to give the company flexibility to redeem some or all of the bonds.

The proposed amendments would shorten the notice period and lower the threshold for a clean-up call redemption. The notice period would be at least five days and not more than 60 days, instead of at least 30 days and not more than 60 days. And, the company will be able to initiate a clean-up call if at least 51% of the bonds have been converted, redeemed or purchased, instead of at least 90% under the bonds’ current terms.

The company is also proposing to eliminate the bonds’ change-of-control put option.

In addition, the requirement to maintain a listing will be deleted from the bonds’ terms.

Approval of the proposed changes requires consents from holders of at least 90% of the aggregate principal amount of bonds to be delivered before the early consent deadline at noon ET on Dec. 13.

The consents solicitation expires at noon ET on Dec. 20.

If insufficient electronic consents are submitted in favor of the extraordinary resolution prior to the early consent deadline, a bondholders’ meeting will be held at 4 a.m. ET on Dec. 23. At least 75% of the votes cast at the meeting must be in favor of the extraordinary resolution in order for it to pass.

If the proposed changes are approved, a supplemental trust deed will be executed on Dec. 23.

Questions may be directed to GLAS Specialist Services Ltd. (+44 20 3597 2940, lm@glas.agency, https://glas.agency/investor_reporting/china-logistics-property-holdings-co-ltd).

Incorporated in the Cayman Islands, China Logistics Property is an investment holding company, and the group develops and leases storage facilities and provides related management services in China.

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