China’s Tewoo Group gives final results of tender, exchange offers

By Sarah Lizee

Olympia, Wash., Dec. 13 – Tewoo Group Co., Ltd. announced the results of its separate exchange and tender offers for four series of notes issued by its financing subsidiaries.

The notes covered by the offers are the $300 million of 4½% guaranteed bonds due 2019 issued by Tewoo Group Finance No 2 Ltd., $300 million of 4 5/8% guaranteed bonds due 2020 and $200 million of 5½% guaranteed bonds due 2022 issued by Tewoo Group Finance No 3 Ltd. and $450 million of 5.8% senior guaranteed perpetual capital securities issued by Tewoo Group Finance No 5 Ltd.

Exchange offer

By the expiration time, 11 a.m. ET on Dec. 9, $27.28 million of 4½% bonds, $37,095,000 of 4 5/8% bonds, $40,598,000 of 5½% bonds and $177,895,000 of 5.8% securities were received and accepted for exchange.

Each series of existing bonds will be exchanged at a one-to-one ratio for a corresponding series of new dollar-denominated bonds, which are being issued by Tianjin State-owned Capital Investment and Management Co., Ltd.

The 4½% bonds will be exchanged for $27.88 million of new zero-coupon series A bonds due 2024, the 4 5/8% bonds will be exchanged for $37,391,000 of new 0.15% series B bonds due 2026, the 5½% bonds will be exchanged for $41.01 million of new 1.55% series C bonds due 2029, and the 5.8% capital securities will be exchanged for $180,489,000 of new 1.6% series D bonds due 2039.

The new exchange bond amounts include accrued interest to but excluding the settlement date of Dec. 17.

The company said it obtained approval of a maximum issue size of $1.55 billion of exchange bonds.

Tender offer

The tender offer expired at 11 a.m. ET on Nov. 22. By then, $253,317,000 of the 4½% bonds, $214,733,000 of the 4 5/8% bonds, $108,104,000 of the 5½% bonds and $135,725,000 of the 5.8% securities were tendered and accepted for purchase.

As previously reported, the tender offer prices were initially set as follows:

• $667.28 per $1,000 principal amount of 4½% bonds;

• $572.78 per $1,000 principal amount of 4 5/8% bonds;

• $530.78 per $1,000 principal amount of 5½% bonds; and

• $360.00 per $1,000 principal amount of 5.8% capital securities.

Holders will also receive accrued interest in each offer.

Settlement of the tender offer will also be on Dec. 17.

China International Capital Corp. Hong Kong Securities Ltd. is the dealer manager for each offer, and D.F. King Ltd. is the information, exchange and tender agent.

The tender and exchange offers began on Nov. 22.

The issuer is a Tianjin, China-based company that focuses on commodity trade, logistics, real estate development and other businesses.

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