Datang gets tenders to exchange $283.95 million 12˝% notes due 2022

By Wendy Van Sickle

Columbus, Ohio, May 31 – Datang Group Holdings Ltd. said holders tendered $283.95 million, or 94.65%, of its $300 million outstanding 12˝% senior notes due 2022 (ISIN: XS2339781325) for exchange under an offer that was announced May 23, according to a company announcement.

The company had offered to exchange at least $270 million, or 90%, of the notes for 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 expired at 11 a.m. ET on May 31. The company expects to issue $283.95 million of the new notes to settle the offer on June 1. Listing of the new notes on the Singapore Exchange is expected to occur on June 2.

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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