Hong Kong’s Li & Fung accepts $191.26 million of 4˝% notes due 2025 in tender offer

By Mary-Katherine Stinson

Lexington, Ky., Oct. 6 – Li & Fung Ltd. announced the payment of the early consideration in its tender offer for its 4˝% notes due 2025 (ISIN: XS2214755345), according to a notice.

The company reported it had accepted the $191,259,000 of total principal of notes that were tendered in the offer by the early deadline.

Total consideration of $181,058,519.70, which included accrued interest, was paid on Oct. 6 to holders who had tendered their notes by the early deadline. This leaves $331,226,000 of notes outstanding.

The company offered an early tender consideration of $940 per $1,000 principal amount of notes tendered by the early deadline plus accrued interest.

Holders tendering after the early deadline will only be eligible to receive subsequent tender consideration of $910 per $1,000 principal amount.

All notes tendered and accepted for purchase in the offer will be canceled.

As previously reported, the early deadline had been extended to 5 p.m. ET on Oct. 3, pushed out from 5 p.m. ET on Sept. 28.

Early tender instructions submitted prior to the extension remained valid and irrevocable.

As previously reported on Sept. 29, the company stated at that time that it was also considering upping the maximum acceptance amount. The company had also previously stated that if the maximum acceptance amount is exceeded for tenders made on or prior to the early deadline, no notes tendered after the early deadline will be accepted for purchase, and any notes tendered by the early deadline will be accepted on a prorated basis.

Early tendered notes have priority in acceptance over notes tendered after the early deadline.

The offer expires at 5 a.m. ET on Oct. 19 with the results announced that same day. Final settlement is expected for Oct. 20.

As announced on Sept. 15, the company launched an offer to buy the notes, up to a maximum acceptance amount of $172,485,000 in principal amount.

The original $600 million issue is comprised of four tranches of $300 million, $100 million, $100 million and $100 million issued on Aug. 18, 2020, Aug. 24, 2020, Oct. 29, 2020 and Jan. 27, 2021, respectively. The current outstanding principal amount is $522,485,000.

The company said the offer is intended to reduce its debt.

Citigroup Global Markets Ltd. (+852 2501 2541; ProjectDash.AP.2023@citi.com) is the dealer manager.

The information and tender agent is Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933; lifung@investor.morrowsodali.com; https://projects.morrowsodali.com/LiFung).

Li & Fung is a global trading group based in Hong Kong.

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