Keen Start extends offer for REXLot convertibles until month-end

By Susanna Moon

Chicago, July 14 – REXLot Holdings Ltd. said that substantial shareholder Keen Start Ltd. again extended the settlement date for its offer to purchase some of REXLot’s 6% convertible bonds originally due 2016 and extended to 2017 and 4.5% convertible bonds due 2019.

The settlement date for the offer has been extended to July 31 from July 20 and before that from July 5.

The offer is conditioned on the receipt of tenders for more than 75% of the outstanding principal amount of each series of convertibles. This condition has not been met.

Keen Start had received indications from the holders of more than 75% of each series that they wished to participate in the offer, but the actual tendering of the bonds has been delayed.

Some bondholders previously exercised their put options under the convertibles. REXLot agreed to consent to the withdrawal of those put options and facilitate the unblocking of those convertibles from trading so that the bondholders can participate in the Keen Start offer.

Up to June 30, Keen Start has not received from the holders of more than 75% of each series of convertibles enough e-mail confirmations together with evidentiary support details that their convertibles have been un-put and are ready to be traded, according to a July 2 announcement from REXLot.

As a result, Keen Start extended the settlement date.

As of July 2, the amount of convertibles putable because of a delisting was HK$563,214,096.19, the amount of bonds redeemable through a put option on the bonds’ third anniversary was HK$87,643,974.17, and the total amount of 2016 convertibles outstanding, excluding the put 2016 convertibles, was HK$1,451,059.

As previously announced, Keen Start plans to purchase 75.01% of the 2016 convertibles and 75.05% of the 2019 convertibles.

Keen Start is offering to purchase the convertibles at par plus accrued and default interest.

On June 1, Keen Start extended the settlement date to June 28 based on the timing required for withdrawing the previous puts.

There were delays to REXLot’s payment for convertible bonds put back to the company.

There were enough offshore funds to make the payment for any put bonds, REXLot had said, but its bank required additional time “to go through certain internal procedures to effect payment.”

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

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