Chinese corn oil maker Shandong Sanxing, said that it had won support from bondholders of its overdue dollar bonds to swap them for cash and new bonds. They said that holders of 82% of the 7.99% 2021s that matured in January had agreed to its amended restructuring proposal. Under the restructuring, they will exchange each $1,000 in principal for $150 in cash and $850 in new 2Y bonds with a coupon of 9.75% and credit enhancement in the form of a guarantee from an onshore subsidiary. The new notes will be secured by shares in the issuer. Interest of 200bp above the normal coupon will accrue if there is a default on the bonds, until the default is cured. Three months after the bonds are issued, the company must redeem 5.88% of its principal, and another 10% on March 31, 2022. If Shandong lists its corn subsidiary before the bonds’ maturity, it must use $50mn to redeem a portion of the notes within 30 days, and another $30mn within 120 days. The company had earlier launched an exchange offer for the bonds that failed.
Separately, Yida China got approval from bondholders of its 14% 2022s to remove a put option and waive an event of default, following an arbitration award against it. The property developer said that holders of 92% of the bonds approved of the measures. The 2022s had a put option giving bondholders the option to redeem the bonds at par on March 8 and some of them had exercised the option. The waiver would mean that they will not need to pay them yet. The coupon would be lowered to 12% from 14% for the final year and Yida will pay some of the principal in stages ahead of the March 2022 maturity. Yida’s USD 14% 2022s were down 0.25 cents to 68.56 cents on the dollar.