China Jinmao sets minimum yield of new notes, gives results of exchange offer

By Wendy Van Sickle

Columbus, Ohio, June 13 – China Jinmao Holdings Group Ltd. announced the tenor and minimum yield of the new notes it will issue in exchange for the existing $500 million of 6¾% notes due 2021 guaranteed by the company and said the offer will be extended by one day.

The new notes will have a tenor of five years and a minimum yield of 4%, according to a notice.

As of the exchange offer expiration, $98,096,000 principal amount of existing notes, or 19.62% of the total outstanding, has been validly tendered for exchange pursuant to the offer.

Further announcements on the new notes will be made as soon as practicable.

The exchange offer was extended to 11 a.m. ET on June 13 from 11 a.m. ET on June 12.

The company announced the offer to exchange the existing 2021 notes for new dollar-denominated guaranteed notes on June 4.

The existing notes were issued by the company’s Franshion Development Ltd. subsidiary. The new notes will be issued by its Franshion Brilliant Ltd. unit.

For each $1,000 of existing notes tendered, holders will receive $1,070 of new notes, any accrued interest and cash in lieu of any fractional amount of notes.

The final interest rate of the new notes is expected to be set at the pricing of a concurrent new money issuance, which was expected to occur on June 14.

Any additional new notes sold in the concurrent new money issuance will be on the same terms and form a single series with the corresponding new notes issued in the exchange offer.

The company said the purpose of the exchange offer is to refinance the notes and extend the company’s senior debt maturity.

Settlement of the exchange offer is expected to take place on June 21.

Instructions to exchange any of the existing notes may only be submitted in a minimum principal amount of $200,000 and integral multiples of $1,000 in excess thereof.

Hongkong and Shanghai Banking Corp. Ltd. (852 2822 4100, 44 20 7992 6237 or liability.management@hsbcib.com), Goldman Sachs (Asia) LLC (852 2978 0440, 44 207 774 1000 or AEJ_Syndicate@ny.email.gs.com) and Morgan Stanley & Co. International plc (44 20 7056 4984 or tmgap@morganstanley.com) are the dealer managers.

D.F. King Ltd. (44 20 7920 9700, 852 3953 7230 or jinmao@dfkingltd.com) is the information and exchange agent.

China Jinmao is a Hong Kong-based investment holding company that invests in and develops real estate in mainland China.

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