China's Nine Dragons Paper calls remaining $47.58 million 7 7/8% notes

By Marisa Wong

Madison, Wis., June 22 - Nine Dragons Paper (Holdings) Ltd. said it will redeem in full the outstanding principal amount of its $300 million 7 7/8% senior notes due 2013. As of June 22, the outstanding principal amount of the notes is $47,575,000.

The notes will be redeemed on Aug. 16 at par plus an applicable premium and accrued interest to the redemption date.

The current applicable interest rate is 9 7/8%. The applicable premium for each note will be the greater of (a) 1% and (b) the excess of (i) the present value at the redemption date of the principal amount on April 29, 2013 plus all remaining scheduled interest payments, discounted at a rate equal to the adjusted Treasury rate plus 50 basis points, over (ii) the principal amount on the redemption date. The adjusted treasury rate will be determined using the 5/8% U.S. Treasury security due April 30, 2013.

HSBC Bank USA, NA is the trustee.

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

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