China Properties extends tender offer for 9 1/8% notes, lifts payment

By Marisa Wong

Madison, Wis., Nov. 23 - China Properties Group Ltd. said it extended the expiration date on its cash tender offer for all of its $300 million of outstanding 9 1/8% senior notes due 2014 to 11:59 p.m. ET on Dec. 7 from Nov. 22.

China Properties began a tender offer and consent solicitation for the 9 1/8% notes on Oct. 25.

As previously reported, as of the consent deadline at 5 p.m. ET on Nov. 5, the company received consents from a majority of the outstanding principal amount of the 9 1/8% notes to proposed amendments to the indenture governing the notes. The company said it is no longer seeking or accepting consents.

The company solicited consents to proposed amendments that would eliminate substantially all of the restrictive covenants and certain events of default in the indenture governing the notes. The amendments will be effected in a third supplemental indenture.

Holders who tender their notes after the consent deadline but before the expiration date will now receive the tender offer consideration of $962.50 per $1,000 principal amount of notes, instead of $915, as previously announced.

Holders who tendered their notes on or before the consent deadline will also receive $962.50 for each $1,000 of notes tendered, instead of $940, as previously stated, which includes the early tender payment and consent payment.

The company will also pay accrued interest to but excluding the payment date.

As previously reported, the tender offer and consent solicitation are dependent on a needed consents condition, which has already been satisfied, a tender condition and a financing condition. Prior to the expiration date, at least 60% of the principal amount must be tendered, and the company must be able to make a drawdown on its facility to fund the tender offer and consent solicitation along with available cash.

Bank of America Merrill Lynch (646 855-3401) is the dealer manager and solicitation agent, and Bondholder Communications Group, LLC (212 809-2663) is the information and tender agent.

Hong Kong-based China Properties is an investment holding company with interests in commercial properties located in Shanghai.

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