Datang offers to exchange 12˝% notes due 2022 for new 2023 notes

By Marisa Wong

Los Angeles, May 23 – Datang Group Holdings Ltd. launched an offer on Monday to exchange at least $270 million, or 90%, of its $300 million outstanding 12˝% senior notes due 2022 (ISIN: XS2339781325) for new notes, according to a company announcement.

The company is offering an exchange consideration for each $1,000 principal amount consisting of $1,000 of new 12˝% dollar-denominated notes due May 31, 2023 and accrued interest to be paid in cash.

The offer will expire at 11 a.m. ET on May 30.

Settlement is slated for June 1. Listing of the new notes on the Singapore Exchange is expected to occur on June 2.

The exchange offer may lapse automatically if the final acceptance rate is below the 90% threshold, the company noted.

The offer is conditioned on, among other things, there being no material adverse change in the market from the beginning of the offer to the settlement date and an affirmative determination by the company that accepting the exchanges, paying the exchange consideration and effecting the related transactions are in the company’s best interests.

Haitong International Securities Co. Ltd. (+852 2840 1680, attn.: debt capital markets, project.datang.lm@htisec.com) is dealer manager.

Morrow Sodali Ltd. (+44 20 4513 6933, +852 2319 4130, datang@investor.morrowsodali.com, https://bonds.morrowsodali.com/datang) is information and exchange agent.

The company said the exchange offer, once completed, will improve its overall financial condition, extend its debt maturity profile, strengthen its balance sheet and improve its cash flow management.

The company noted, however, that if the offer is not successfully consummated, it may not be able to fully repay the existing notes, and its efforts to generate sufficient cash flow to meet its financial commitments may be limited. The company may as a result consider an alternative debt restructuring exercise.

The property development company is based in Xiamen, China.

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