CDC to repurchase some 3.75% exchangeable convertibles at discount

By Jennifer Chiou

New York, Dec. 29 - CDC Corp. said it agreed with several noteholders to repurchase some of its $168 million of 3.75% senior exchangeable convertible debentures due 2011 at a discount.

The company will pay about 76 for the debentures, in line with a third-party independent consultant's assessment of the fair value of the notes.

"We feel that negotiated purchases of notes below par value is fair for both parties in light of the current overall economic climate, and I am pleased to have the opportunity to buy these notes at an appropriate value," chief executive officer Peter Yip said in the release.

"Looking forward, we expect to continue to make progress and come to amicable settlements on the fair value of the remaining portion of our notes."

The company issued the notes in 2006 to 12 institutional investors led by Evolution Capital Management LLC. If there is an initial public offering of at least $100 million for either CDC Software or CDC Games, then the notes become exchangeable into that company's common shares.

CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services. It announced the possibility of a partial repurchase on Sept. 24.

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