Correction: China's Hong Long receives tenders for $51 million 12½% notes so far

Hong Long Holdings Ltd. issued an amended news release on Tuesday that corrects the amount of notes and consents received in its tender offer. A story in the Dec. 8 edition of Prospect News reported the incorrect figures, and a revised version follows:

By Angela McDaniels

Tacoma, Wash., Dec. 7 - Hong Long Holdings Ltd. had received tenders from holders of $51 million principal amount, or 63%, of its $90 million of 12½% senior notes due 2012 as of 4 a.m. ET on Dec. 7, which was the consent deadline in a tender offer and consent solicitation that began Nov. 20.

The company had received consents from holders of $66 million principal amount, or 81%, of the notes as of the consent deadline, according to a company news release.

The consents received are enough to amend the note indenture. Hong Long plans to execute a supplement to the indenture containing the proposed amendments, which will become operative on the settlement date.

The company is soliciting consents to eliminate or modify substantially all of the restrictive covenants, some events of default and other provisions in order to gain increased financial and operating flexibility. The proposed changes also waive any claims related to the performance or non-performance of certain terms in the indenture.

Holders who tendered by the consent deadline will receive $750 per $1,000 principal amount of notes. The total includes an early tender payment of $30 and an early consent payment of $20.

Hong Long will also pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 24.

Investors could deliver consents only and receive the consent payment. Those who tender will be deemed to have delivered consents.

The tender offer ends at 4 a.m. ET on Dec. 21.

Funding for the offer will come from cash resources and a loan from an independent third party.

Merrill Lynch Far East Ltd. is the dealer manager, and Lynchpin Bondholder Management (+852 2526 5406, attn: Harriet Lowe or honglonginfo@lynchpinbm.com) is the information, consent and tender agent.

Hong Long is a Shenzhen, China-based property developer.

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