ASIA-PACIFIC
CHINA
YIDA CHINA SWEETENS EXCHANGE OFFERYIDA CHINA HOLDINGS has slightly sweetened
the exchange offer and consent solicitation
for its US$300m 6.95% bonds due April 19,
and has extended the deadline to March 23.
The original deadline was on March 9, but
the Hong Kong-listed Chinese real estate
company had earlier extended it to March
16 as the acceptance rate was below its
target.
The company has increased the cash
portion of the offer to make it more
appealing to bondholders.
Under the revised offer, holders who
tender their bonds will receive US$90 in
cash and US$910 in new bonds due 2022 per
US$1,000 in principal amount, compared
with US$80 in cash and US$920 in new
bonds before.
The new bonds will pay 10% annual
INTERESTûFORûTHEûlRSTûSIXûMONTHSûANDûûAû
year thereafter, with a put option in March
2021.
Yida also changed some terms of the new
bonds due 2022 to provide more protection
to holders. It will offer to repurchase all
outstanding new bonds at par based on
certain outcomes and will allow holders of
the new bonds to institute proceedings
earlier if the trustee does not comply with
written instructions from holders with
respect to an event of default.
Yida will not go ahead with the exchange
unless at least US$225m, or 75%, in principal
amount of the 2020s are tendered and
accepted.
The company earlier warned that if the
exchange offer is not completed, it may
implement an alternative debt
restructuring, as its resources may not be
enough to redeem the bonds.
Yida has not yet announced the new
ACCEPTANCEûRATEûFOLLOWINGûTHEûlRSTûEXTENDEDû
DEADLINEûOFû-ARCHûû"UTûINûANûEARLIERûlLING û
Yida said holders of US$204.746m, or
68.25%, of the 2020 bonds had tendered
them as of March 9.
Ratings agencies downgraded Yida in
response to the exchange offer. This month
Moody’s cut Yida’s corporate rating to Caa2
with a negative outlook, from Caa1, and
downgraded the senior unsecured dollar
bonds to Caa3 from Caa2, stating that it
considers the planned transaction a
distressed exchange.
Last month, S&P cut Yida’s company
rating to CC with a negative outlook, fromCCC–, and the rating of its bonds to C from
CC, while Fitch downgraded the company
and the bonds to C from CCC.
Admiralty Harbour is dealer manager for
the exchange offer. Yida is also seeking
consent from bondholders to waive their
claims under the old notes.CHINA HUIYUAN JUICE RUNS OUTCHINA HUIYUAN JUICE GROUP said it was
considering its restructuring options after it
defaulted on an interest payment on
US$200m 6.5% August 16 2020 bonds
following the 30-day grace period.
)NûAûSTOCKûEXCHANGEûlLING ûTHEû(ONGû+ONG
listed juice maker cited the adverse effects
OFûTHEûCORONAVIRUSûOUTBREAKûONûITSûCASHmOWû
for failing to make the payment by March
17.
In September, the struggling company
managed to pay the interest on the dollar
bond within a 30-day grace period.
The bonds were quoted at 46/48 on March
ûACCORDINGûTOû2ElNITIVûDATA
Under the terms of the notes, the failure
to make the interest payment constitutes an
event of default. Holders of at least 25% in
aggregate principal amount of the notes
may now give written notice to the
company to declare the principal and
accrued and unpaid interest on the notes
immediately due and payable. Huiyuan said
that if the holders follow this course it could
have a “material adverse impact” on its
lNANCIALûPOSITION
Huiyuan said it was assessing the full
impact of the default, including whether it
would trigger any cross-defaults on its loan
facilities or debt securities.
The company said it would continue to
EXPLOREûVARIOUSûlNANCINGûCHANNELSûTOû
fund its interest payment obligations as
well as a possible restructuring which
might involve the notes to improve its
liquidity position.Creditor SDF III Holdings sought the
appointment of provisional liquidators in a
WINDING
UPûPETITIONûlLEDûAGAINSTû(UIYUANûATû
Hong Kong’s High Court in October. The
court has adjourned the hearing because of
the coronavirus pandemic, according to the
lLING
Huiyuan’s shares have been suspended
from trading since April 3 2018 after it
violated several Hong Kong listing rules over
the disclosure of loans to a company
majority owned by its chairman.
It appointed Admiralty Harbour Capital as
lNANCIALûADVISERûINû*UNEûTOûPROVIDEûDEBT
related advice.ASIA STANDARD BUYS EVERGRANDE
BONDSASIA STANDARD INTERNATIONAL GROUP made
further purchases of China Evergrande
bonds last week.
It spent US$16.9m to buy bonds with
an aggregate face value of US$25m
between March 16 and March 19 in the
open market, according to a stock
EXCHANGEûlLING
The Hong Kong property company
bought US$5m in principal amount of
12% notes due January 22 2024 for
US$4m on March 16. On March 18, it
paid US$7.1m for US$10m in principal
amount of the 12% October 24 2023
notes issued through Evergrande’s
63.5%-owned unit Hengda Real Estate
Group. On March 19, it bought US$10m
in principal amount of Evergrande’s
11.5% notes due January 22 2023 for
US$5.8m.
The purchases were funded through
internal cash resources and banking
facilities.
Earlier this month, the company disclosed
that it and its Asia Standard Hotel Group
unit had each bought US$10m in principal
amount of Evergrande’s 12% 2024s on March48 International Financing Review March 21 2020ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2020 TO DATE
Asia-Pacific
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: L41 HSBC 67 6,262.29 7.1
2 Standard Chartered 45 4,565.02 5.1
3 Credit Suisse 39 4,211.06 4.7
4 Citigroup 34 3,934.96 4.4
5 UBS 33 3,805.60 4.3
6 Bank of China 44 3,210.83 3.6
7 Credit Agricole 28 3,074.17 3.5
8 DBS Group 34 2,916.80 3.3
9 Deutsche Bank 27 2,763.50 3.1
10 Barclays 35 2,709.62 3.1
Total 193 88,777.99ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: L11 Citigroup 59 12,102.34 6.8
2 JP Morgan 60 11,706.30 6.6
3 Standard Chartered 58 10,510.87 5.9
4 HSBC 80 8,925.88 5.0
5 Deutsche Bank 38 8,515.69 4.8
6 BNP Paribas 36 7,814.09 4.4
7 BofA Securities 35 7,440.72 4.2
8 Goldman Sachs 33 6,824.78 3.8
9 Morgan Stanley 27 6,406.11 3.6
10 Credit Suisse 46 6,312.13 3.5
Total 302 178,467.678 IFR Emerging 2325 p 47 - XX.indd 48 20 / 03 / 2020 18 : 57 : 16