China Evergrande begins consent bid to amend four series of notes

By Susanna Moon

Chicago, Feb. 27 – China Evergrande Group began a consent solicitation for its 8¾% senior notes due 2018, 7.8% senior notes due 2019, 8% senior notes due 2019 and 12% senior notes due 2020.

China Evergrande is asking to amend the terms of four series of notes, including a number of restrictive covenants, according to a company announcement.

The solicitation “will provide the company with more flexibility in optimizing its capital structure, exploring new financing platforms and pursuing investment opportunities that suit the company’s business development strategies, including to facilitate the proposed reorganization,” the release said.

The consent solicitation will end on March 10 at 5 p.m. ET for the 2018 notes and at 11 a.m. ET for the 2019 notes and the 2020 notes. Holders need to be of record as of 5 p.m. ET on Feb. 24.

The company said it will pay a consent fee of $3.50 per $1,000 principal amount to holders who give their consents to the proposed amendments if the needed consents are obtained.

Settlement has been set for March 16.

D.F. King (+44 20 7920 9700, 212 269-5550, 866 751-6312, evergrande@dfkingltd.com or https://sites.dfkingltd.com/evergrande) is the information and tabulation agent.

Evergrande is a property developer based in Guangzhou, China.

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