China’s Xinjiang begins exchange offer for $300 million 7 7/8% notes

By Sarah Lizee

Olympia, Wash., Feb. 27 – Xinjiang Guanghui Industry Investment (Group) Co., Ltd. is offering to exchange any and all of its $300 million of 7 7/8% senior notes due 2020 (ISIN: XS1581385900) for new notes due 2021, according to a notice.

The exchange consideration per $1,000 of existing notes will be $1,015 of new notes and the additional cash incentive of $30.

Holders will also receive accrued interest.

The offer will expire at 11 a.m. ET on March 11.

Settlement is expected for March 19.

Separate from the exchange, the company is conducting a concurrent offering to issue additional new notes. Any additional new notes sold in the concurrent new money issuance will be on the same terms and form a single series with the corresponding new notes issued under the exchange offer.

Pricing of the new money issuance is expected for March 12.

The company said the purpose of the exchange offer is to refinance the existing notes and improve its debt structure to enable it to extend its debt maturity profile, develop more steadily, strengthen its balance sheet and improve cash flow management.

Haitong International Securities Co. Ltd. (+852 2973 6741), Hongkong and Shanghai Banking Corp. Ltd. (+852 3409 2755) and Tensant Securities Ltd. (+852 3895 2777) are the joint dealer managers for the exchange offer.

The coal company based in the Xinjiang Uygur region of China.

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