By Mary-Katherine Stinson
Lexington, Ky., March 26 – China Aoyuan Group Ltd.’s wholly owned subsidiary Add Hero Holdings Ltd. sold $1.8 billion of secured notes in three tranches, according to a listing particulars document dated March 20.
Tranche A consists of $650 million of 7½% senior secured notes due 2029.
In tranche B, the company sold $500 million of 8% senior secured notes due 2030.
Finally, Add Hero sold $650 million of 8.8% senior secured notes due 2031 in tranche C.
The 2029 notes amortize as follows: $150 million will be redeemed on Sept. 30, 2026 and $350 million will be redeemed on Sept. 30, 2028, in both cases at par plus accrued interest, if any. The remaining will be paid on maturity on Sept. 30, 2029.
The tranche B and C notes do not amortize.
During the first two-year period starting on the reference date, Add Hero may elect to pay all the interest due on the interest payment dates in PIK interest. Beginning two years and six months after the reference date, a portion of the interest may be paid in PIK interest, with the remaining portion of accrued and unpaid interest paid in cash at a rate of at least 2% annually.
The maximum amount of PIK interest that may be issued for each tranche of notes is as follows: up to $145 million for tranche A, up to $120 million in tranche B and up to $170 million in tranche C.
The maximum principal amount of the notes after considering the maximum PIK interest is up to $800 million for tranche A, up to $620 million for tranche B and up to $820 million for tranche C.
Formerly China Aoyuan Property Group Ltd., the investment holding company is based in Guangzhou, China.
| Issuer: | Add Hero Holdings Ltd.
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| Guarantor: | Offshore subsidiaries of China Aoyuan Group
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| Amount: | $1.8 billion
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| Issue: | Senior secured notes
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| Trustee: | Madison Pacific Trust Ltd.
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| Call features: | Mandatory redemption when specified net proceeds account reaches $20 million; optional redemption using any other net proceeds via reverse Dutch auction
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| Settlement date: | March 18
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| Listing date: | March 26
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| Distribution: | Regulation S, Rule 144A, Regulation D
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| Tranche A
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| Amount: | $650 million
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| Maturity: | Sept. 30, 2029
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| Coupon: | 7½%
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| ISIN: | XS2785422622, XS2785422995, XS2785422978
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| Tranche B
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| Amount: | $500 million
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| Maturity: | Sept. 30, 2030
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| Coupon: | 8%
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| ISIN: | XS2785423273, XS2785423430, XS2785423604
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| Tranche C
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| Amount: | $650 million
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| Maturity: | Sept. 30, 2031
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| Coupon: | 8.8%
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| ISIN: | XS2785423786, XS2785423943, XS2785424081
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