New World Development (0017) is expected to exchange and cancel its outstanding existing notes, with an aggregate principal amount of US$199 million (HK$1.55 billion), as of 4 pm London time on October 20, the company’s filing showed on Wednesday.
As part of the exchange offers, NWD is expected to issue US$189 million in new VD notes in aggregate and has paid the relevant accrued interest and early cash consideration.
The developer earlier launched a debt exchange offer to exchange three bonds maturing in 2027 and 2028 for newly issued VD bonds, seeking to significantly push back the maturity of part of its debt to 2032.
The notes participating in the exchange offer include a batch with a principal amount of US$200 million, a coupon of 5.875 percent, maturing in June 2027; a note with a principal amount of US$400 million, a coupon of 8.625 percent, maturing in February 2028; and a note with a principal amount of US$600 million, a coupon of 4.75 percent, maturing in January 2027.
