Li & Fung launched a tender offer for its $500mn 4.375% 2024s, offering to purchase for cash any and all of the notes. The consent solicitation was for certain modification of the terms and conditions of the notes to insert a new condition entitling the company to redeem all of the outstanding notes with accrued interest except unpaid interest. Those holders agreeing before the early tender consideration of November 9 will receive $940 per $1,000 per principal. Subsequent tender considerations beyond that date would see holders receive $890 per $1,000 in principal. Regarding the consent solicitation, Li & Fung proposes to amend the optional redemption notice period to five days with an optional redemption amount of $890 per $1,000 in principal. Li & Fung plans to reduce its indebtedness via the above offer and will fund the tender with internal resources.
Li & Fung’s 4.375% 2024s are currently trading at 87.47, yielding 11.84%, a discount to tender purchase price.