Zhejiang Kasen Industrial holders put back all exchangeable bonds

By Tali Rackner

Norfolk, Va., Nov. 7 – Kasen International Holdings Ltd. said all holders of wholly owned subsidiary Zhejiang Kasen Industrial Group Co., Ltd.’s exchangeable bonds requested that Zhejiang Kasen repurchase the bonds, according to a notice.

As a result, all RMB 134,782,800 of the bonds will be purchased at a price of RMB 107.5 per exchangeable bond, representing par plus an annual coupon of 7.5%, on Nov. 9.

All repurchased bonds will be canceled upon completion of the buyback, for a total of RMB 144,898,755.

As previously reported, bondholders had the opportunity to request that all or a portion of the outstanding bonds be repurchased during the period from Oct. 21 to Nov. 3.

The put right was triggered because Haining China Leather Market Co. Ltd.’s shares closed below 80% of the exercise price of the exchangeable bonds for at least 10 out of 20 consecutive trading days during the quarter that began Sept. 29. Haining China Leather’s shares are held by Zhejiang Kasen.

The company said it will use internal resources to fund the repurchase.

Based in Haining City, Zhejiang, China, Kasen manufactures and sells upholstered furniture.

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