China's Kaisa receives consents to issue more 13½% notes due 2015

New York, June 8 - Kaisa Group Holdings Ltd. said it received the necessary consents to amend the indenture for its 13½% senior notes due 2015.

The solicitation expired at 5 p.m. ET on Wednesday.

The company needed agreement from holders of a majority of the notes.

As previously reported Kaisa said it was allowed to incur substantial debt under the indenture in the form of bank loans or new notes but not to issue additional notes under the same indenture. The company was thus seeking consents to amend the indenture in order to issue additional notes.

In announcing the solicitation, Kaisa said it believed it would be more beneficial to noteholders if the company were to issue additional notes instead of new notes under a new indenture because new notes may reduce investor demand for the 13½% notes.

The company will pay a consent fee of $15 per $1,000 principal amount of 13½% notes to those that consented.

Citicorp International Ltd. is the trustee for the notes.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8769) is the solicitation agent, and Lucid Issuer Services Ltd. (+44 20 7704 0880) is the information and tabulation agent.

Kaisa is a Shenzhen, China-based property development company.

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