Yieh Phui breaks interest coverage ratio; 5% notes are putable

By Susanna Moon

Chicago, April 28 – Taiwan’s Yieh Phui Enterprise Co. Ltd. notified holders that it breached a financial covenant of the RMB 300 million 5% notes due 2017 issued by Golden Developments Holdings Ltd., which triggered the put option at par.

The company has fallen short of the interest coverage ratio of 2 times required under the note terms, recording a ratio of EBITDA to interest expenses of 0.893 times as of Dec. 31, according to a company notice.

As a result, the coupon has been increased to the step-up rate of 5.2%, which will be paid on the next interest payment date of July 16.

Also, the notes are putable at par plus accrued interest on June 24, with the put option exercisable by May 27.

The notes are guaranteed by Yieh Phui, a steel producer based in Taiwan.

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