Kaisa shareholders to vote on exchange convertible issuance June 12

By Caroline Salls

Pittsburgh, May 23 – Kaisa Group Holdings Ltd. will hold an extraordinary general meeting on June 12 to ask shareholders to approve the issuance of exchange convertible bonds as part of the company’s offshore debt restructuring, according to a news release.

The exchange convertible bonds will be issued in exchange for Kaisa’s mandatorily exchangeable bonds.

A total of $259.49 million, representing the outstanding principal amount of the mandatorily exchangeable bonds as at the exchange date, will be exchangeable into 864.95 million conversion shares based on the initial conversion price of HK$2.34 per conversion share.

The company said those shares represent 16.84% of the existing issued share capital as of May 23 and 14.15% of the share capital as enlarged by the full conversion of all exchangeable convertible bonds, including maximum accrued paid-in-kind interests and maximum future PIK interests.

The bonds will be issued in minimum amounts of $1,000 and in $1.00 increments thereafter.

The exchange convertible bonds will mature on Dec. 31, 2019, subject to a one-year extension option.

If the maturity date is extended to Dec. 31, 2020, the interest rate for the extension period will be 10%, paid in cash.

Otherwise, the company may elect to pay interest in cash only or in cash and in-kind for the first two years.

Cash-only interest for 2017 would accrue at a rate of 4.61%, and combination interest would be 5.56% paid in-kind and 1% in cash; for 2018, cash-only interest would be 5.61% for the June 30 payment and 6.61% for the Dec. 31 payment, and combination interest would be 4.56% PIK and 2% cash in June and 2.56% cash and 4% PIK in December; in 2019, no cash only rate will be offered, so the cash interest portion of the rate for that year would be 6%, and the PIK portion would be 0.56%; and any interest due in 2020 will accrue at a cash-only rate of 10%.

Kaisa Group, a Shenzhen, China-based property development company, filed bankruptcy on May 5, 2016 in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. court recognition of its Hong Kong scheme proceedings. The Chapter 15 case number is 16-11303.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.