By Angela McDaniels
Tacoma, Wash., Feb. 21 – KWG Group Holdings Ltd. priced $350 million of 7 7/8% senior notes due Sept. 1, 2023, according to a company announcement.
The bookrunners for the Regulation S notes (//expected BB-) are Merrill Lynch (Asia Pacific) Ltd., Bank of East Asia, Ltd., Credit Suisse (Hong Kong) Ltd., Goldman Sachs (Asia) LLC, HeungKong Securities Ltd., Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley & Co. International plc and Standard Chartered Bank.
The notes are callable in whole but not in part at par plus a premium prior to Sept. 1, 2021. They will be callable in whole or in part at 102% of par beginning Sept. 1, 2021 and at 101% of par beginning Sept. 1, 2022. The company has an equity clawback option for up to 35% of the notes at 107.875 prior to Sept. 1, 2021. It also has a clean-up call at par if no more than 10% of the notes remain outstanding.
Proceeds will be used to refinance onshore and offshore debt.
Some subsidiaries of the company will guarantee the notes.
KWG Property is a developer based in Guangzhou, China.
| Issuer: | KWG Group Holdings Ltd.
|
| Issue: | Senior notes
|
| Amount: | $350 million
|
| Maturity: | Sept. 1, 2023
|
| Bookrunners: | Merrill Lynch (Asia Pacific) Ltd., Bank of East Asia, Ltd., Credit Suisse (Hong Kong) Ltd., Goldman Sachs (Asia) LLC, HeungKong Securities Ltd., Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley & Co. International plc and Standard Chartered Bank
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Call option: | In whole but not in part at par plus a premium prior to Sept. 1, 2021; in whole or in part at 102 beginning Sept. 1, 2021 and at 101 beginning Sept. 1, 2022; clean-up call at par if no more than 10% of notes remain outstanding
|
| Equity clawback: | For up to 35% of notes at 107.875 prior to Sept. 1, 2021
|
| Pricing date: | Feb. 21
|
| Expected rating: | Fitch: BB-
|
| Distribution: | Regulation S
|
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