LVGEM (China) Real Estate Investment is marketing three-year US dollar senior unsecured notes at initial price guidance of 12.25% area in a concurrent new money issue alongside an exchange offer.
The benchmark Reg S issue will price as early as today.
Gemstones International is the issuer of the new notes and LVGEM (China) and certain offshore subsidiaries are guarantors.
LVGEM (China) is rated B3/B/BB- (Moody’s/Fitch/Lianhe Global) and the new notes have expected ratings of B/BB– (Fitch/Lianhe Global).
Meanwhile the Hong Kong-listed Chinese real estate company announced that holders of US$227.39m, or 56.85% of the total aggregate principal amount of the US$400m 8.50% senior notes due August 2020 have accepted the exchange offer.
Under the exchange offer, holders of each US$1,000 of principal amount of 8.50% 2020s will receive US$1,000 in principal amount of the new three-year notes due 2023 plus accrued and unpaid interest.
Settlement for the exchange offer and the concurrent new money issue is expected on March 10.
Proceeds raised from the concurrent new money issue will be used to refinance medium to long term offshore debt coming due within one year.
Nomura, BOSC International, AMTD, DBS Bank and Haitong International are joint dealer managers on the exchange offer.
They are also joint global coordinators, joint bookrunners and joint lead managers for the concurrent new money issue, together with CCB International, BoCom International, China Investment Securities International, Zhongtai International, HeungKong Financial, ABC International, CMBC Capital, UBS and Yue Xiu Securities.
https://www.ifre.com/story/2268499/lvgem-china-markets-us-3yr-at-1225a-alongside-exchange-offer-l4n2aw0b4
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