7 Days Group to repay floating-rate notes due 2010 using IPO proceeds

By Angela McDaniels

Tacoma, Wash., Nov. 2 - 7 Days Group Holdings Ltd. plans to repay all of its floating-rate senior notes due Sept. 10, 2010 with a portion of the proceeds from its initial public offering of American Depositary Shares.

The principal amount of notes outstanding was $80 million as of Sept. 30, according to an F-1 filing with the Securities and Exchange Commission.

The notes were issued in September 2007, and the interest rate is Libor plus 800 basis points.

The remaining proceeds from the IPO will be used to fund working capital and for other general corporate purposes, which may include the expansion of the company's hotel chain and the improvement of existing leased-and-operated hotels.

7 Days is an economy hotel chain based in Guangzhou, China.

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