SRE Group tenders for $200 million 8 5/8% notes due 2013

New York, June 8 - SRE Group Ltd. said it has begun a tender offer and consent solicitation for its $200 million of 8 5/8% guaranteed senior notes due 2013.

Holders who tender by the early consent deadline of 5 p.m. ET on June 18 will receive $800 per $1,000 principal amount of notes.

The total includes a purchase price of $725, a $62 early tender payment and a $13 consent payment.

SRE will also pay accrued interest up to but excluding the settlement date.

Holders who tender after the early consent deadline will receive only the $725 per $1,000 payment.

Consents may be delivered without a tender by the early consent deadline, in which case the amount received will be the $13 per $1,000 consent payment.

However holders who tender will be deemed to have delivered consents.

The offer ends at 5 p.m. ET on July 14.

To complete the offer, SRE needs to receive the necessary consents, to complete a financing and to satisfy or waive other conditions.

Meanwhile SRE is proposing to sell stock or equity-linked securities to fund the tender offer, which will require a maximum amount of $164.31 million plus expenses. The offering is expected to be around $160 million.

The financing will only go ahead if SRE receives the necessary consents to complete the tender offer. Shareholder approval is needed for the issuance of stock or equity-linked securities.

The issuer is a property developer focusing on mid-to-high end residential development in Shanghai.

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