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:
- Swapping its $99.25mn 11.375% bonds due October 2022 for a new note due 29 January 2025
- Swapping its $200m 12% bonds due October 2022 for a new note due 30 January 2025
- Swapping its $175.7mn 13.75% bonds due February 2023 for a new note due 18 May 2025
- Swapping its $300mn 12.5% bonds due April 2023 for a new note due 8 July 2025
- Swapping its $300mn 12.5% bonds due July 2023 for a new note due 21 October 2025
- Swapping its $230mn 11% due February 2024 for a new 6.5% bond due 17 May 2026
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.
