China YuHua reports results of solicitation exercise for convertibles

Chicago, Jan. 19 – China YuHua Education Corp. Ltd. announced the results of its consent solicitation for its 0.9% convertible bonds due 2024 (ISIN: XS2089158609), according to an announcement.

The consent deadline was 11 a.m. ET on Jan. 18.

The company received consents from at least 90% of the bondholders by the deadline and the extraordinary resolution was approved with the waivers and amendments.

The proposed amendment documents were executed on Thursday.

Pursuant to the amended terms and conditions, the company will redeem HK$500 million of the bonds at par plus interest on Jan. 30, leaving HK$974 million outstanding.

Background

As previously reported, the bonds were putable at par on Dec. 27. Holders holding the entire outstanding principal amount of the bonds had exercised the put option. However, the company did not redeem the bonds on the put date, which triggered an event of default under the bond conditions.

The company worked with an ad-hoc group of bondholders to enter into a supplemental trust deed and a supplemental agency agreement to, among other things, restructure the terms and conditions of the convertible bonds and waive some conditions.

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, chinayuhua@investor.morrowsodali.com , https://projects.morrowsodali.com/ChinaYuHua) is the tabulation and information agent.

Bank of New York Mellon, London Branch is the trustee and principal agent.

China YuHua is a Zhengzhou, China-based provider of private education services.

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