CDC buys back some 3.75% exchangeables at discount

By Susanna Moon

Chicago, Jan. 30 - CDC Corp. said an affiliate of the company repurchased the holdings of a noteholder's 3.75% senior exchangeable convertible notes due 2011 at less than par on Dec. 31.

As noted on Dec. 29, the company will pay about 76 for the notes, in line with a third-party independent consultant's assessment of the fair value of the notes.

The buyback follows the closing of previously announced agreements with other noteholders to purchase their entire holdings at less than par value.

The company said it plans to continue to pursue possible early purchases or redemptions with remaining noteholders.

"We continue to make solid progress in our efforts to reduce the company's debt through repurchases," Peter Yip, chief executive officer of CDC, said in a news release.

"We feel that additional purchases will not only help to decrease our debt, but also help strengthen our financial condition and prospects," Yip said. "We continue to believe that these negotiated purchases of notes below par value are fair for both parties in light of current overall economic conditions."

The company issued the notes in 2006 to 12 institutional investors led by Evolution Capital Management LLC. If there is an initial public offering of at least $100 million for either CDC Software or CDC Games, then the notes become exchangeable into that company's common shares.

CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services. It announced the possibility of a partial repurchase on Sept. 24.

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