China Logistics gains consents to amend 6.95% convertibles due 2024

By Mary-Katherine Stinson

Lexington, Ky., Dec. 23 – China Logistics Property Holdings Co., Ltd. has gained the necessary consents to amend its HK$1,109,000,000 6.95% convertible bonds due 2042 (ISIN: XS1999871863), according to a company announcement.

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

Approval of the proposed changes required 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.

As insufficient electronic consents were submitted in favor of the extraordinary resolution prior to the early consent deadline, a bondholders’ meeting was held at 4 a.m. ET on Dec. 23. At least 75% of the votes cast were required to be in favor of the extraordinary resolution in order for it to pass. The company reported that 100% of the votes cast at the meeting were in favor.

Since the proposed changes were approved, a supplemental trust deed was executed on Dec. 23.

As previously reported, the purpose of the solicitation was 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 amendments shortened the notice period and lowered the threshold for a clean-up call redemption to at least five days and not more than 60 days from at least 30 days and not more than 60 days. And, the company is now 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’ previous terms.

The bonds’ change-of-control put option was also eliminated and the requirement to maintain a listing was deleted from the bonds’ terms.

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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