This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Chinese property developer Jiayuan has again extended its exchange offer and consent solicitation deadline date for the third time, to October 5. The initial offer was launched on August 24 and extended twice before to September 16 and September 23. Six bonds are under consideration for the exchange offer which includes:
The coupons on the new 2025s and 2026s which were initially set at 6.5%, has been raised to 9% for the first 12 months payable-in-kind, and at 7.5% after 12 months, payable in cash. The bonds also have a mandatory redemption where 5% of the principal will be repurchased 12 months prior to maturity, 10% repurchased nine months before maturity, and 15% repurchased six months before maturity. The payment schedule for the deferred interest is amended. All six bonds will have one interest payment deferred. For the July 2023s and February 2024s, 5% of the interest will be paid six months after the preceding interest payment date, 45% nine months after, 30% twelve months after, and 20% fifteen months after. Jiayaun requires a minimum acceptance of 90% of each bond’s principal amount. However, what has been holding back the developer is that a winding-up petition filed by a holder of its 11.375% 2022.
Jiayuan’s dollar bonds are trading at distressed levels of 8.5-12.5 cents on the dollar.