China's Kaisa solicits consents to issue more 13½% notes due 2015

By Marisa Wong

Madison, Wis., May 26 - Kaisa Group Holdings Ltd. announced it began soliciting consents to a proposed amendment to the indenture governing its 13½% senior notes due 2015.

Kaisa said it is currently allowed to incur substantial debt under the indenture in the form of bank loans or new notes. It is not, however, permitted to issue additional notes under the same indenture. The company is thus seeking consents to amend the indenture in order to issue additional notes.

Kaisa said that it believes it would be more beneficial to noteholders if the company were to issue additional notes instead of new notes under a new indenture because new notes may reduce investor demand for the 13½% notes.

The record date for the solicitation is 5 p.m. ET on May 25, and the expiration time is 5 p.m. ET on June 8.

The company will pay holders of record as of the record date a consent fee of $15 per $1,000 principal amount of 13½% notes if they consent to the amendment.

The solicitation is conditioned upon the receipt of consents from holders of a majority in principal amount of the 13½% notes.

Citicorp International Ltd. is the trustee for the notes.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8769) is the solicitation agent, and Lucid Issuer Services Ltd. (+44 20 7704 0880) is the information and tabulation agent.

Kaisa is a Shenzhen, China-based property development company.

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