China's Nine Dragons accepts tenders for $71 million of 7 7/8% notes

By Jennifer Chiou

New York, Aug. 7 - Nine Dragons Paper (Holdings) Ltd. announced that it accepted tenders from holders of $70,998,000 of its notes in the offer for any and all of its $118,573,000 of 7 7/8% senior notes due 2013.

The offer and early tender deadline both expired at midnight ET on Aug. 6. The early tender date had been previously scheduled for 5 p.m. ET on July 22.

All holders who tendered will receive par plus accrued interest up to but excluding the settlement date, slated for Aug. 11.

Before the early tender date was extended, holders who tendered after the early date would have received $970 per $1,000 principal amount plus accrued interest.

Funding for the offer will come from cash on hand.

The interest rate on the notes varies depending on the rating. Based on current assessments, the rate payable on the next coupon date of Oct. 29 will be 9 7/8%.

Following the offer and prior repurchases, the company said that about 16% of the original $300 million of notes remains outstanding.

Deutsche Bank AG, Singapore Branch was the dealer manager. Bondholder Communications Group was the information agent and tender agent.

Nine Dragons produces packaging paperboard products. The company is incorporated in Bermuda and based in Guangdong, China.

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