By Wendy Van Sickle
Columbus, Ohio, March 3 – LVGEM (China) Real Estate Investment Co. Ltd. said it will issue a total of $450 million of 12% three-year notes to settle an exchange offer and under a concurrent new-money issuance.
Specifically, the company will issue $227.39 million of notes to settle the exchange offer and $22.61 million of notes under the concurrent new-money issuance, according to a notice.
Nomura, BOSC International, AMTD, DBS Bank Ltd., CCB International, Haitong International, Bocom International, China Investment Securities International, Zhongtai International, HeungKong Financial, ABC International, CMBC Capital, UBS and Yue Xiu Securities are the bookrunners.
The company announced on Tuesday it took in tenders to exchange $227.39 million, or 56.85%, of its outstanding 8½% senior notes due 2020.
The offer to exchange the notes for new notes with an 11½% minimum yield opened on Feb. 19 and expired at 11 a.m. ET on March 2.
The company announced Tuesday the exact yield would be 12%
The company is also planning a concurrent issuance of new senior notes.
Noteholders were offered $1,000 principal amount of new notes plus accrued interest and any fractional amount of notes issued in cash for $1,000 principal amount of their old notes.
Settlement of the offer is expected for March 10.
LVGEM is a property developer based in Hong Kong.
| Issuer: | Gemstones International, Ltd.
|
| Guarantor: | LVGEM (China) Real Estate Investment Co. Ltd.
|
| Issue: | Guaranteed senior notes
|
| Amount: | $450 million ($227.39 million to settle exchange, $222.61 million new money)
|
| Maturity: | March 10, 2023
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| Bookrunners: | Nomura, BOSC International, AMTD, DBS Bank Ltd., CCB International, Haitong International, Bocom International, China Investment Securities International, Zhongtai International, HeungKong Financial, ABC International, CMBC Capital, UBS and Yue Xiu Securities
|
| Coupon: | 12%
|
| Ratings: | Fitch: B
|
| Lianhe: BB-
|
| Call option: | Make-whole call
|
| Pricing date: | March 6
|
| Settlement date: | March 10
|
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