Guozhen gives results of tender for 7¼%, 7 7/8%, 6.4% Qinghai bonds

Chicago, Feb. 19 – Guozhen International Trade Consulting Co., Ltd. announced results of its tender offer for the $300 million of 7¼% bonds due 2020 (ISIN: XS1552613660), the $250 million of 7 7/8% bonds due 2021 (ISIN: XS1793297513) and the $300 million 6.4% bonds due 2021 (ISIN: XS1613685475) issued by Qinghai Provincial Investment Group Co., Ltd., according to an announcement.

As of the expiration date of 11 a.m. ET on Feb. 17, the following amounts have been validly submitted and accepted for tender:

• $168,331,000 of the $300 million 7¼% notes due 2020;

• $207.86 million of the $300 million 6.4% notes due 2021; and

• $83.25 million of the $250 million 7 7/8% notes due 2021.

As previously reported, per each $1,000 principal amount, the company is offering $411.90 for the 7¼% notes and $367.50 for the 7 7/8% and 6.4% notes.

Settlement is expected on Feb. 24.

The 2020 bonds mature on Feb. 22. In the event the issuer does not redeem the 2020 bonds in full on the maturity date, eligible holders of the 2020 bonds purchased pursuant to the offers will receive the tender price offer as set out above, $411.90 per $1,000 principal amount of notes. If the issuer does redeem the 2020 bonds in full at maturity, the offer in relation to the 2020 bonds will terminate.

Additionally, it has also been previously reported that the issuer failed to make an interest payment due Jan. 10 on the 6.4% bonds, resulting in an event of default under the terms and conditions of the bonds.

That event of default has triggered a cross-default under the 7¼% bonds and the 7 7/8% bonds.

A previous delayed coupon relating to the 7¼% bonds also triggered a cross-default under the 6.4% bonds and 7 7/8% bonds.

The metals and mining investment company is based in Xining, China.

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