Article/Intelligence
UPDATE 8: Greentown China Applies for Listing of $500M 8.45% Notes Due 2028 Effective Feb. 25
Mon Feb 24, 2025 07:46 PM ET: State-backed developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange on Feb. 24 evening that it has applied to the exchange for the listing of, and permission to deal in, its $500 million 8.45% notes due 2028, with effect from today, Feb. 25.
As the company announced on Feb. 13, it issued the 8.45% notes to refinance existing indebtedness, including funding the concurrent offer to purchase for cash its $446.5 million 4.7% notes due April 29 and $294.5 million 5.65% notes due July 13.
The 8.45% notes are issued by the company and guaranteed by multiple subsidiaries as listed below.
UPDATE 7: Greentown China to Accept for Purchase $312.2M of $446.5M 4.7% Notes Due April, $139.7M of $294.5M 5.65% Notes Due July Under Tender Offer
Sun Feb 23, 2025 09:46 PM ET: State-backed developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange this morning, Feb. 24, that it will accept a total of $312.2 million of its $446.5 million 4.7% notes due April 29 and $139.7 million of its $294.5 million 5.65% notes due July 13, which have been validly tendered pursuant to the tender offer as of the Feb. 20 deadline.
The accrued interest due on the April notes and the July notes is $15.14 per $1,000 principal amount and $6.59 per $1,000 principal amount, respectively, according to the announcement.
The payment for each series of the relevant notes accepted for purchase is expected to be made on or about Feb. 25. Following the settlement, the outstanding principal amount of the April notes will be $134.3 million and the July Notes will be $154.8 million, the announcement states.
The company issued $500 million 8.45% new senior offshore notes due 2028 to purchase for cash its April notes and July notes at par.
UPDATE 6: Greentown China Prices Additional $150M 8.45% Notes Due 2028 at 100.5 to Yield 8.258%
Tue Feb 18, 2025 09:25 PM ET: State-backed developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange on Feb. 18 evening that it has priced its additional $150 million 8.45% senior notes due 2028 at 100.5 to yield 8.258%. The new notes will form a single series with the $350 million 8.45% senior notes due 2028 to be issued on Feb. 24.
On Feb. 18, the company, the subsidiary guarantors, Deutsche Bank, HSBC, Guotai Junan International, J.P. Morgan, Soochow Securities (Hong Kong) and UBS entered into the purchase agreement in connection with the issue and sale of additional senior notes, according to the announcement.
Gross proceeds from the new notes issue will be $150.8 million. The company intends to use the net proceeds to refinance existing indebtedness, including funding the concurrent offer to purchase for cash its $446.5 million 4.7% notes due April 29 and $294.5 million 5.65% notes due July 13.
Application will be made to the exchange for the listing of, and permission to deal in, the new notes by way of debt issues to “professional investors.” It is expected that completion of the new notes issuance will take place on Feb. 24, the announcement states.
The new notes will bear interest from and including Feb. 24 at a rate of 8.45% per year, payable in arrears on Feb. 24 and Aug. 24 of each year, commencing on Aug. 24, according to the announcement.
UPDATE 5: Greentown China Proposes to Issue Additional USD 8.45% Senior Notes Due 2028; Amount Yet to Be Finalized
Tue Feb 18, 2025 12:28 AM ET: State-backed developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange early this afternoon, Feb. 18, that it proposes to conduct an international offering of additional USD-denominated 8.45% senior notes due 2028. The new notes will form a single series with the $350 million 8.45% senior notes due 2028 to be issued on Feb. 24.
The company intends to use the net proceeds of the proposed offering to refinance existing indebtedness, including funding the concurrent offer to purchase for cash its $446.5 million 4.7% notes due April 29 and $294.5 million 5.65% notes due July 13.
The new notes will be offered only outside the United States in compliance with Regulation S of the Securities Act. As of today, the amount and the issue price of the new notes have yet to be finalized.
Upon finalizing the terms of the proposed offering, Deutsche Bank, HSBC, the company and the subsidiary guarantors, among others, are expected to enter into a purchase agreement and other ancillary documents in relation to the new notes, the announcement states.
UPDATE 4: Greentown China Prices $350M 8.45% Notes Due 2028 at Par
Thu Feb 13, 2025 07:38 PM ET: State-backed developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange on Feb. 13 evening that it has priced at par $350 million 8.45% senior notes due Feb. 24, 2028.
On Feb. 13, the company, the subsidiary guarantors, and Deutsche Bank, HSBC, Guotai Junan International, J.P. Morgan, Soochow Securities (Hong Kong) and UBS as the initial purchasers entered into a purchase agreement in connection with the notes issue, according to the announcement.
The gross proceeds from the notes issuance will be $350 million. The company intends to use the net proceeds to refinance its existing indebtedness, including, but not limited to, for funding the concurrent offer to purchase for cash its $446.5 million 4.7% due April 29 notes and $294.5 million 5.65% due July 13 notes, according to the announcement.
The 8.45% new notes will pay interest in arrears on Feb. 24 and Aug. 24 of each year, commencing on Aug. 24, 2025, the announcement states.
UPDATE 3: Greentown Sets FPG at 8.45% for Capped $350M 3.5NC2 Senior Unsecured Notes
Thu Feb 13, 2025 06:22 AM ET: Hong Kong-listed, state-backed Chinese developer Greentown China Holdings Ltd. has set final price guidance, or FPG, at 8.45% for its proposed capped $350 million 3.5-year non-call two-year senior unsecured notes due Feb. 24, 2028, according to terms seen by Octus.
Initial price guidance was in the 8.85% area, as reported.
The new notes will become callable at 101 at any time on or after Feb. 24, 2027, the terms show.
Orderbooks have exceeded $1.6 billion as of around 6:10 p.m., Hong Kong time, today, Feb. 13, a deal update sent by bookrunners seen by Octus shows.
Timing for the new issue is today’s business, the terms show.
UPDATE 2: Greentown Announces Proposed New USD Notes Issue to Fund Concurrent Tender Offer for $446.5M 4.7% Due April, $294.5M 5.65% Due July Notes
Thu Feb 13, 2025 12:41 AM ET: Hong Kong-listed, state-backed Chinese developer Greentown China Holdings Ltd. announced to the Hong Kong stock exchange today, Feb. 13, that it plans to issue USD-denominated senior notes to refinance existing debt including funding a concurrent tender offer for two tranches dollar notes due 2025, confirming Octus’ previous story.
Deutsche Bank, HSBC, Guotai Junan International, J.P. Morgan, Soochow Securities (Hong Kong) and UBS act as the joint global coordinators, joint lead managers and joint bookrunners of the proposed new notes offering.
The company has commenced an offer to purchase for cash its $446.5 million 4.7% due April 29 notes and $294.5 million 5.65% due July 13 notes at par. Total maximum acceptance amount is expected to be equal to the sum of the aggregate principal amount of proposed concurrent new notes and $100 million, as reported, and priority tender acceptance will be given to holders who subscribe for the new notes.
UPDATE 1: Greentown Proposes New 3.5NC2 Notes Issue to Fund Tender Offer of Existing Due April, July Notes, Sets IPG in 8.85% Area
Wed Feb 12, 2025 10:29 PM ET: Hong Kong-listed, state-backed Chinese developer Greentown China Holdings Ltd. has proposed to issue RegS, 3.5-year non-call two-year USD senior unsecured notes with initial price guidance set in the 8.85% area, according to terms seen by Octus.
The proposed new notes will fund a concurrent tender offer for part of Greentown’s $446.5 million 4.7% due April 29 notes and $294.5 million 5.65% due July 13 notes at par. Priority tender acceptance will be given to holders who subscribe for the new notes, the terms state.
Maximum tender acceptance amount will be the sum of the new issue amount and $100 million. Tender expiration deadline is Feb. 20 at 5 p.m., Central European Time, and announcement of results will be on or about Feb. 21.
The new notes are expected to be rated B1 by Moody’s, according to the terms. Orderbooks have exceeded $500 million as of around 10:50 a.m. Hong Kong time, today, Feb. 13, a deal update sent by bookrunners seen by Octus shows.
Timing for the new issue is as early as today’s business, the terms show.
Deutsche Bank and HSBC are the tender offer’s deal managers, while D.F. King is the information and tender agent, the terms show.
Original Story 12:23 a.m. UTC on Jan. 7, 2025
Greentown China Considers to Issue New Small-Sized USD Bond With Potential Tender Offer, Along With Internal Cash Resources to Partially Refinance Due 2025 Offshore Bonds
Management of Hong Kong-listed developer Greentown China Holdings Ltd. said during a series of investor calls held today, Jan. 7 that it is mulling a new small-sized USD bond issuance potentially with a tender offer and its internal cash resources to partially refinance the company’s due 2025 offshore bonds, according to two sources who attended the calls.
The company is facing about $768 million offshore bond maturities in 2025, including $446.5 million 4.7% due April 29 notes, $294.5 million 5.65% due July 13 notes and $27 million 2.3% notes due Jan. 27, according to Octus data.
Management said on the call that the company is considering issuing a small-sized USD bond to partially refinance the $446.5 million 4.7% notes and $294.5 million 5.65% notes and plans to repay part of the two bonds with its own cash resources and proceeds of bank loans in order to lower its offshore debt exposure.
The potential new bond issuance will not have a keepwell deed provided by its largest state-owned shareholder China Communications Construction Group, or CCCG, said the management.
The company has obtained approval from the National Development and Reform Commission, or NDRC, for refinancing the 4.7% and 5.65% offshore notes, according to the management, adding that it has yet to decide whether to launch the issuance pending on the appropriate market window.
The state-backed real estate developer has around $3 billion of offshore debt including $768 million offshore bonds, around $500 million of bilateral loans and certain bank loans with onshore guarantee for offshore borrowings, said the management.