China’s Hilong receives tenders for 58.12% of 7¼% notes, 80% necessary

Chicago, June 18 – Hilong Holding Ltd. announced the receipt of tenders for 58.12% of the notes in their ongoing exchange offer for the $165,114,000 of 7¼% senior notes due June 22, 2020 (ISIN: XS1628314889) to be exchanged for new notes (B2//B), according to an announcement.

The amount tendered was reported as of 11 a.m. ET on June 18.

For the exchange to happen, tenders must be received from 80% of bondholders.

The exchange expiration deadline has been extended to 11 a.m. ET on June 19.

The company is urging noteholders who have not yet tendered their notes to do so.

Hilong does not and will not have alternative financing means available to repay the existing notes which mature on June 22.

Should the company not receive enough tenders for an exchange, an event of default will occur. This will trigger cross defaults on other debt, including, but not limited to, its 8¼% senior notes due 2022.

Admiralty Harbour Capital Ltd., CLSA Ltd., HSBC and SPDB International Capital Ltd. are mandated as dealer managers in relation to the exchange offer and were also joint bookrunners and joint lead managers in connection with a new money issuance.

Due to market conditions, though, a new money issuance has been canceled.

The company has mandated D.F. King Ltd. in London (+44 20 7920 9700) and in Hong Kong (+852 3953 7208) as the information and exchange agent.

Hilong is an integrated oilfield equipment and service provider based in Hong Kong.

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