Kaisa Group has agreed to meet its offshore bondholders and discuss ways to repay its debt. Kaisa will meet New Money Consortium, a group of its bondholders, after they rejected Kaisa’s maturity extension for it $400mn 6.5% bonds due next Tuesday (December 7) for new notes maturing in June 2023. SCMP notes that the New Money Consortium, which holds over 50% of the $400mn bond has offered about $2bn in new funds to finance Kaisa through seven options. The options include an offer to buy new bonds by Kaisa that could be exchanged with equity in some of its listed units like Kaisa Prosperity (property management unit), and Sing Tao News Corporation. Alternatives include financing third-party buyers with loans of up to $1.6bn for 18 of Kaisa’s property projects currently on sale in Shenzhen. Also, an injection of up to $2bn into Kaisa’s urban renewal projects, or up to $1bn in project loans with a coupon of 12.5% were presented.
Kaisa’s dollar bonds are higher today with its 11.25% 2022s up 1.55 points to 36.585 cents on the dollar.
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