REXLot may seek consents to extend redemption dates for convertibles

By Marisa Wong

Morgantown, W.Va., March 14 – REXLot Holdings Ltd. said it has been unable to make payments for the redemption of its 6% convertible bonds due 2017 and 4.5% convertible bonds due 2019 on the respective due dates. This constituted an event of default under the bonds, according to a notice on Tuesday.

The company said it intends to launch a proposal soon to seek bondholders’ consent for, among other things, further extension of the redemption settlement dates.

The company also expects to pay roughly HK$1 billion before it launches the consent solicitation to partially satisfy the redemptions. The remaining amount would be paid after the bondholder meetings.

The company said it will make another announcement about the potential consent solicitation by March 24.

As announced on March 9, REXLot expected to make payments for the redemption of its 6% bonds due 2017 and 4.5% bonds due 2019 on March 14.

The week before that, the company said it needed more time to complete signing and approval procedures in order to settle the redemptions and expected to make the bonds payments by March 8.

As disclosed on Feb. 14, holders had delivered put notices for HK$252,052,286 of the 6% bonds and HK$1,175,312,397 of the 4.5% bonds during the period from Dec. 28 to Jan. 28. The company planned to redeem the HK$1,452,639,000 of put bonds on Feb. 27 at par plus accrued interest. The remaining HK$3,677,448 of outstanding 6% bonds was set to mature on Feb. 28, 2017.

The company again confirmed that it has sufficient offshore financial resources to satisfy its repayment obligations under its bonds.

Based in Hong Kong, REXLot provides machines and services to the Chinese lottery market.

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