Yuzhou accepts for exchange $62.26 million notes from two 2022 series

By Marisa Wong

Los Angeles, Feb. 22 – China’s Yuzhou Group Holdings Co. Ltd. announced the results of its exchange offer for its 6% senior notes due 2022 (ISIN: XS1555300497) and 8 5/8% notes due 2022 (ISIN: XS1938265474).

The exchange offer expired at 11 a.m. ET on Feb. 18. As of the expiration time, holders had tendered a total of $62.26 million of notes for exchange, including $46.19 million of the 6% notes and $16.07 million of the 8 5/8% notes.

The company decided to accept for exchange all of the tendered notes. The exchange settled on Tuesday.

Yuzhou had offered $50 cash principal repayment, a $10 cash incentive and $950 of new 7.8125% notes due Jan. 21, 2023 for each $1,000 note. No interest was paid on the old notes.

The company said it obtained support from an overwhelming majority of the noteholders. The company has secured a series of successful results for its liability management exercises since January, which has effectively extended the maturity of more than 95% of the total aggregate principal amount of the notes, alleviating the pressure on liquidity within a reasonable timeframe, according to a company announcement.

Prior to the current exchange offer, the company had completed an exchange offer with the same exchange consideration for the same two series of 2022 notes. After the previous exchange offer, which settled on Jan. 20, there were $74,346,000 of the 6% notes and $30,511,000 of the 8 5/8% notes outstanding.

Between the two exchange offers, the company also entered into an agreement a holder of the 6% notes to exchange $16,212,000 of the notes under the same terms as those of the exchange offer.

To date, the company has effectively extended the maturity of the old notes in the aggregate principal amount of $555,684,000, or 95.47% of the total principal amount outstanding prior to the exchange offers.

As of Feb. 22, a total of $527,899,800 of new notes have been issued in exchange for the old notes.

The additional new notes will be listed on Feb. 25.

BOCI Asia Ltd. (+852 2840 1032) and Haitong International Securities Co. Ltd. (+852 2973 6741) are the dealer managers.

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

Based in Shanghai, Yuzhou develops residential properties in southern China.

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