RiseSun plans to talk with 2022 noteholders about debt management

By Marisa Wong

Los Angeles, Dec. 13 – RiseSun Real Estate Development Co., Ltd. is considering liability management options for the outstanding 8% senior notes due 2022 (ISIN: XS1979285571) and 8.95% senior notes due 2022 (ISIN: XS2280638607) issued by wholly owned subsidiary RongXingDa Development (BVI) Ltd. and guaranteed by RiseSun.

In an announcement on Monday, RiseSun said it is working on funding the payment obligations under the 2022 notes and is constantly reviewing its financial conditions due to the adverse impact of a number of factors, including the macroeconomic environment, policies, deteriorating consumer sentiment and the Covid-19 pandemic.

RiseSun and RongXingDa said they will actively manage their exposure under the notes and intend to engage with the noteholders with the goal of conducting liability management of the notes on a consensual basis.

The companies will consider all debt management options that may be available, including exchange offer, new issuance of notes, tender offer or open market repurchase.

The companies said they are looking to engage with as many creditors as possible and are therefore launching a noteholders identification through Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, risesun@investor.morrowsodali.com).

Haitong International Securities Co. Ltd. (project.risesun.lm@htisec.com) is financial adviser and Sidley Austin legal adviser to RiseSun and RongXingDa.

Linklaters will provide legal advice to Haitong International.

RiseSun is a Langfang, China-based property developer.

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