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China's Shimao begins consent solicitation for 8% notes, floaters
By Angela McDaniels
Tacoma, Wash., Sept. 2 - Shimao Property Holdings Ltd. is soliciting consents from the holders of its $250 million of senior floating-rate notes due 2011 and $350 million of 8% senior notes due 2016, according to a company news release.
The company issued $500 million of 9.65% senior notes due 2017 on Aug. 3. Noteholders are being asked to consent to amendments to the indenture of the old notes that would conform it to the terms of the new notes.
Among other things, the amendments would allow the company to make investments in joint ventures in which it holds a minority interest or in subsidiaries not subject to the terms of the indenture.
The amendments would also allow the company to restructure some of its subsidiaries that hold an interest in its hotels and list them on a stock exchange. Shimao noted that it does not currently have a timetable or execution plan for this restructuring.
The company said the modifications will enable it to pursue business opportunities that may not otherwise be available to it at attractive valuations or at all and to better suit its business needs.
Holders who consent will receive a consent fee of $5.50 per $1,000 principal amount of notes. Only holders of record as of 5 p.m. ET on Aug. 31 are eligible for the consent fee.
The consent solicitation will expire at 5 p.m. ET on Sept. 13.
The company needs consents from holders of at least a majority of the notes in order to make the changes.
The solicitation agent is Morgan Stanley & Co. International plc (call Winnie Wu at +852 3963 0054), and the information agent is D.F. King & Co., Inc. (call Kristian Klein at 1 212269 5550, 1 800 269 6427 or 44 20 7920 9700).
Shimao is a real estate developer based in Shanghai.
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