eHi swaps $336.89 million 2024 notes for $282.98 million new 2027 notes

By Devika Patel

Knoxville, Tenn., March 27 – eHi Car Services Ltd. has completed an exchange offer for its 7¾% senior notes due 2024 (ISIN: XS2335327388), according to a notice. The company also issued new notes on March 19 and plans to refinance notes not exchanged in the exchange offer.

Tender

Holders had tendered and the issuer accepted $336.89 million, or 88.31%, of the outstanding 2024 notes. The holders will receive $282,979,000 of new debt in exchange.

The new debt, in the form of 12% senior notes due Sept. 26, 2027 (ISIN: XS2782510049), may be redeemed prior to maturity.

Settlement occurred and the exchanged 2024 notes were cancelled on Tuesday, and the 2027 notes were listed on Wednesday.

Upon cancellation of the exchanged 2024 notes, $44.61 million of the 2024 notes will remain outstanding.

The company said it will make a further announcement for every subsequent 5% interval of the initial principal amount of the 2024 notes that have been redeemed or cancelled.

New notes

On March 19, the company and its subsidiary guarantors agreed to issue $42,021,000 of additional debt via Deutsche Bank AG, Singapore branch, and J.P. Morgan Securities LLC.

Proceeds from the new money issuance will be used to refinance the remaining 2024 notes not exchanged in the exchange offer and to optimize eHi’s debt structure.

The new notes will form a single series with the 12% notes due 2027 issued under the exchange offer, for a total principal of $325 million.

eHi Car Services is a car rental and services company based in Shanghai.

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