Kaisa to redeem existing notes and exchange convertibles on Aug. 3

By Caroline Salls

Pittsburgh, July 5 – Kaisa Group Holdings Ltd. informed the trustees and holders of its existing notes that all outstanding amounts of the existing notes will be redeemed on Aug. 3 at par plus any unpaid interest accrued up to but excluding the redemption price, according to a news release.

Immediately after completion of the exchange offer and as of July 5, the principal amount of the existing series A notes outstanding was $25.99 million, the principal amount of the existing series B notes outstanding was $30.97 million, the principal amount of the existing series C notes outstanding was $36.05 million, the principal amount of the existing series D notes outstanding was $36.82 million, and the principal amount of the existing series E notes outstanding was $67.81 million.

Kaisa said it will use the net proceeds from a concurrent new-money issuance to satisfy the payment of the redemption of all remaining outstanding existing notes.

Upon redemption of the existing notes, they will be cancelled and delisted from the official list of the SGX-ST.

In addition, the company will complete an early redemption of all of its exchange convertible bonds on Aug. 3 at par plus any interest accrued up to but excluding the redemption date.

As a result of the redemption, the company said the conversion period for the exchange convertible bonds will end at 11:59 a.m. ET on July 24.

Each bondholder may elect that the holder’s exchange convertible bonds are not redeemed by 11:59 a.m. ET on July 27.

As of July 5, the principal amount of the outstanding exchange convertible bonds was $265.9 million.

The company said it will use the net proceeds from the new-money issuance to satisfy payments in connection with the redemption.

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.

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