China South City seeks consents to amend five series of notes

By Mary-Katherine Stinson

Lexington, Ky., Dec. 4 – China South City Holdings Ltd. launched a consent solicitation relating to five series of notes, according to a company announcement.

China South City is seeking consents from holders of its 9% senior notes due April 2024 (ISIN: XS2085883119), 9% senior notes due June 2024 (ISIN: XS2120092882), 9% senior notes due July 2024 (ISIN: XS1720216388), 9% senior notes due October 2024 (ISIN: XS2238030162) and 9% senior notes due December 2024 (ISIN: XS2227909640).

The main purpose of the consent solicitation is to, among other things, (i) improve the company’s liquidity and cash flow management by extending the maturity and lowering the interest rates of the notes and implementing principal payments in installments; and (ii) give the company additional time to cure the November interest non-payment by providing a waiver until July 19, 2024 and of all past defaults that arose as a consequence.

The interest payment due on Nov. 20 with respect to the July 2024 notes has not been paid, which will lead to an event of default if not paid by Dec. 20, unless the waiver is granted. The company stated it may not have the ability to make interest payments by Dec. 20.

Noteholders as of the record date of Dec. 1 are invited to participate. Consents are irrevocable.

China South City is offering a consent fee of $5 per $1,000 principal amount of notes for holders who deliver consents by the early deadline of 11 a.m. ET on Dec. 11. Those delivering consents after the early deadline but before the expiration date will be eligible to receive $1.50 per $1,000 principal amount of notes.

The solicitation expires at 11 a.m. ET on Dec. 13.

Payment of the consent fee is expected to be made on Dec. 19 and is conditioned on the delivery of consents from holders of at least 75% of the outstanding principal amount of each series.

Haitong International Securities Co. Ltd. and China Citic Bank International Ltd. are the solicitation agents.

D.F. King Ltd. (+852 3953 7208, +44 20 7920 9700, ChinaSouthCity@dfkingltd.com, www.dfkingltd.com/chinasouthcity) is the tabulation and information agent.

Hong Kong-based China South City develops and operates integrated logistics and trade centers in China.

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