China's Nine Dragons Paper extends early tender date in offer for 7 7/8% bullet notes

By Angela McDaniels

Tacoma, Wash., Feb. 25 - Nine Dragons Paper (Holdings) Ltd. has extended the early tender date in the tender offer for its $283.75 million of outstanding 7 7/8% senior bullet notes due 2013, according to a company news release.

The early tender date is now the same as the offer expiration, midnight ET on March 9, meaning all holders who tender will receive the $50-per-note early tender premium.

The offer began on Feb. 9, and the early tender date was originally scheduled for 5 p.m. ET on Feb. 23.

The company is offering $530 for each $1,000 principal amount of notes, which includes the early tender premium. Holders will also receive accrued interest up to but excluding the payment date, which is expected to be March 12.

The maximum amount payable in the offer, excluding interest, is $160 million, and there is no minimum tender condition.

As of Feb. 23, $160.43 million, or 57%, of the notes had been tendered.

The offer will be funded with internal resources.

The notes' coupon is subject to adjustment from time to time based on the company's ratings. When the offer began, Nine Dragons said that based on its current ratings, the interest rate payable on the next interest payment date, April 29, would be 9 7/8%.

Merrill Lynch & Co. is the dealer manager, and Bondholder Communications Group is the information agent.

Nine Dragons produces packaging paperboard products. The company is incorporated in Bermuda and based in Guangdong, China.

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