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Tear Sheet: Lifestyle’s ‘25 Liquidity Likely Adequate; $350M Due’26 Repayment Contingent on Monetizing Financial Assets and Prime London Office, Refi/ Upsize SOGO CWB Facility, Positive FCF; Shareholder Likely Creditor-Friendly

Credit Research: Cathy Lu, Credit Analyst Credit Research: Junguang Tan, Senior Credit Analyst Relevant Documents: Excel File on Octus Analysis Page Lifestyle $350 million Senior Notes Due 2026 Offering Memorandum (OM) Lifestyle August 2022 Take-Private Disclosure Octus Asia Highlights: ‘25 Liquidity Adequate: Lifestyle is likely to have sufficient liquidity to repay its $261.5 million, 4.5% senior notes due June 2025 by tapping HKD 2.49 billion ($320 million) undrawn revolving credit facility and monetizing HKD 1.27 billion financial assets as of June 30. ‘26 Liquidity Improving: Repayment prospects for the $350 million, 4.8% senior notes due June 2026 will improve as Tower II of the Kai Tak Twins project is scheduled to be completed in 2025, despite a challenging Hong Kong retail sector; Additional Liquidity: The company can raise liquidity by selling its prime London office property valued at GBP 230 million (with GBP 78.5 million debt) as of June 30. Another option would be to refinance – with an upsize of up to HKD 3.5 billion – the HKD 8 billion dual-tranched SOGO Causeway Bay, or CWB facility, in June 2026; Positive ‘25 FCF: The opening of SOGO at Kai Tak Twins Tower I in November 2024 – along with[...]