Yango Group has launched an exchange offer and consent solicitation for its dollar bonds as per an HKEX filing. The exchange offer is for three of its bonds – 10% 2023s , 5.3% 2022s and 10.25% 2022s. The minimum acceptance amounts for the bonds are $209.95mn, $170mn and $300mn respectively. For all the three notes, bondholders may receive new notes maturing on September 15, 2022 with $25 in cash plus accrued interest for every $1,000 in principal. Yango said that the offer is intended to “improve liquidity, avoid payment default, and preserve options to stabilize our operations as a going concern”. It also launched a consent solicitation for its 9.25% 2023s, 8.25% 2023s, 7.5% 2024s7.875% 2024s and 7.5% 2025s regarding their cross default provisions. The consent and exchange deadline is November 10, 2021.
Separately, Yango has asked its asset-backed securities’ (ABS) holders to refrain from asking for repayment for a year over concerns it would struggle to pay, as per Business Times. The forbearance was sought on its local RMB 1.27bn ($200mn) 6.5% ABS due November 2022 that give its holders the option to demand repayment next month due to a put option. Yango was downgraded by Fitch last week and its dollar bonds have crashed over 70% in October.
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