Tus-Holdings said it was facing a short-term liquidity crunch and is working on funding its obligations on its 2021s and 2022s, wherein the 6.95% 2022s saw a coupon default a few weeks ago. At the time, Bloomberg reported that the company was considering funding options including raising money by selling some of its 11% equity stake in 21Vianet to repay its $400mn 7.95% dollar bond due August 2021. They added that Tus-Holdings also applied to the Hefei government to convert a land plot valued at CNY 1.2bn ($190mn) to cash. The company said it will “actively manage exposure” under the bonds and intends to engage with creditors to conduct a consensual liability management policy that includes consent solicitations, waivers and amendments, exchange offers, new issuances, tender offers and open market repurchases.
Tuspark’s 6.95% 2022s and 7.95% 2021s are trading at distressed levels of 35.5 and 40.8 respectively.
