New World Development (0017) said on Thursday it expects to issue about US$189.1 million (HK$1.48 billion) in new secured notes due 2032 after receiving sufficient tenders during the early phase of its debt exchange offer, aimed at easing near-term repayment pressures.
Here are some more details:
-
Last week, the Hong Kong property developer launched a debt exchange offer allowing bondholders to swap some notes due in 2027 and 2028 for new secured debt maturing in 2032.
-
The offer covered three US dollar-denominated note series with a combined outstanding principal amount of about US$991 million, including notes due in January 2027, June 2027 and February 2028.
-
The company said all notes tendered by the early deadline would be accepted in full without scaling - meaning it will buy back 100 percent of the bonds submitted by investors before the deadline.
-
Scaling is the reduction of investors' bond or share tenders when demand exceeds the company's maximum allocation limit.
-
Settlement of the early accepted notes is expected on October 20.
-
New World, one of Hong Kong's most indebted property developers, has been working to reduce debt, sell assets and strengthen liquidity as it grapples with tight credit conditions and a prolonged downturn in the city's property market.
Reuters
