China’s Yincheng extends exchange offer for 13% notes to March 16

By Mary-Katherine Stinson

Lexington, Ky., March 2 – Yincheng International Holding Co., Ltd. announced another extension of its offer to exchange its outstanding $95,965,000 13% senior notes due 2023 (ISIN: XS2454679239) for new notes, according to a notice.

The offer now ends at 11 a.m. ET on March 16, an extension from 11 a.m. ET on March 2. The original deadline was 11 a.m. ET on Feb. 24.

The settlement date and the issuance date for new notes have also been extended. Settlement is now expected around March 20, and the issuance of new notes will occur around March 22.

Settlement was previously slated for March 6 instead of March 1, and the new notes expected to be listed on March 8.

The further extension will take the second extended expiration deadline beyond the maturity date of the existing notes, and if the company does not redeem or repay amounts due and payable on the maturity date, there will be an event of default under the existing notes for non-payment of principal and interest.

Because of this, holders may revoke their instructions by submitting a revocation instruction at or prior to 11 a.m. ET on March 7. After the revocation deadline, tenders are irrevocable.

No other changes have been made to the tender offer.

As previously reported, the company is offering to exchange $1,000 of new 13% notes with a tenor of 364 days and capitalized interest for each $1,000 of existing notes, according to a notice.

To capitalize the accrued interest for the existing notes, each $1 of accrued interest on the existing notes that are tendered and accepted will be exchanged for $1 principal amount of new notes in lieu of cash.

The Regulation S exchange offer is subject to some conditions.

The company reserves the right to amend, modify or waive the terms and conditions of the exchange offer but said it has no present plans to do so.

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

Guotai Junan Securities (Hong Kong) Ltd. +852 2509 5342; dcm.yinchenglm@gtjas.com.hk) is dealer manager for the exchange offer.

D.F. King Ltd. (+44 20 7920 9700, +852 3953 7231, yincheng@dfkingltd.com, https://sites.dfkingltd.com/yincheng) is information and exchange agent.

The Nanjing, China-based company offers development and sale of residential and commercial properties, leasing of investment properties and other real estate services.

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