China's Zhuguang Holdings issues additional 12½% notes, warrants

By Lisa Kerner

Charlotte, N.C., Oct. 15 - Zhuguang Holdings Group Co. Ltd. issued a total of $160 million of senior notes, including $95 million to initial investors on Aug. 5 and Aug. 6, under its previously announced note placement.

The company also completed the issue of warrants on Tuesday to other noteholders.

In total, Zhuguang has issued warrants exercisable for $32 million of stock, including warrants exercisable for $19 million of stock issued to initial investors on Aug. 5 and Aug. 6, a company news release said.

On July 22, Zhuguang announced it agreed to place up to $200 million of 12½% three-year senior notes along with warrants for up to $40 million of shares.

Design Time Ltd., Mile Rise Holdings Ltd. and Bright Creation Investment Ltd. agreed to purchase $95 million of the notes and receive warrants for $19 million of shares. The warrants were expected to have a strike price of HK$2.2691.

Zhuguang could sell up to $55 million more notes to other investors and, once additional security had been provided to the security agent, a further $50 million for a total of $200 million.

As previously reported, the placing agents are CCB International Capital Ltd. and ABCI Capital Ltd.

Proceeds were to be used for debt repayment, funding the future acquisition of some real estate projects and general working capital.

Zhuguang is an investment holding company based in Hong Kong. It operates in two segments: property sales and property rental.

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