CDC's latest 3.75% exchangeables buyback brings total percentage repurchased to 51%

By Angela McDaniels

Tacoma, Wash., March 24 - CDC Corp. said another holder of its 3.75% senior exchangeable convertible notes due 2011 has agreed to sell its exchangeables to an affiliate of the company at less than par value.

Half of the holder's exchangeables were purchased Monday, and the remaining half will be purchased within 30 days, according to a company news release.

The agreement was reached Monday and is in addition to a similar agreement reached and announced that same day.

Once the latest repurchases are completed, CDC will have acquired a total of $85 million, or 50.59%, of the $168 million exchangeables from eight of the 11 holders.

Having repurchased more than half of the exchangeables, the company believes it now has more flexibility and options as it negotiates with the remaining noteholders, chief executive officer Peter Yip said in the release.

The company previously said the purchase of the exchangeables at below par value is consistent with a valuation by a third-party consultant that put the value of the exchangeables at 76 in the fourth quarter of 2008.

CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services.

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