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Published on 9/13/2010 in the Prospect News Emerging Markets Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

China's Shimao obtains needed consents for 8% notes, floaters

By Jennifer Chiou

New York, Sept. 13 - Shimao Property Holdings Ltd. announced a successful end to its consent solicitation for its $250 million of senior floating-rate notes due 2011 and $350 million of 8% senior notes due 2016.

After having received consents from holders of a majority of the notes, the company will execute supplemental indentures.

As already reported, the company issued $500 million of 9.65% senior notes due 2017 on Aug. 3. Noteholders were asked to consent to amendments to the indenture of the old notes that would conform it to the terms of the new notes.

Among other things, the amendments allow the company to make investments in joint ventures in which it holds a minority interest or in subsidiaries not subject to the terms of the indenture.

The amendments also allow the company to restructure some of its subsidiaries that hold an interest in its hotels and list them on a stock exchange. Shimao already noted that it does not have a timetable or execution plan for this restructuring.

The company had said the modifications would enable it to pursue business opportunities that may not otherwise be available to it at attractive valuations or at all and to better suit its business needs.

Holders who consented received a consent fee of $5.50 per $1,000 principal amount of notes. Only holders of record as of 5 p.m. ET on Aug. 31 were eligible for the consent fee.

The consent solicitation expired at 5 p.m. ET on Sept. 13. It began on Sept. 2.

The solicitation agent was Morgan Stanley & Co. International plc (call Winnie Wu at +852 3963 0054), and the information agent was D.F. King & Co., Inc. (call Kristian Klein at 1 212269 5550, 1 800 269 6427 or 44 20 7920 9700).

Shimao is a real estate developer based in Shanghai.


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