China's Kaisa offer to extend maturity on $400 mln offshore bond lapses (updated)

Kaisa Prosperity Holdings

02/12/2021 23:53

(Adds detail on offer, background)
    Dec 3 (Reuters) - China's Kaisa Group Holdings Ltd  1638.HK 
said on Friday it had failed to secure the minimum 95% approval
needed from bondholders to extend the maturity of a $400 million
note that is due next week.
    The embattled property developer last week announced its
offer to exchange its 6.5% offshore bonds due Dec. 7
 KY226867333=  for new notes due June 6, 2023 at the same
interest rate if at least 95% of holders accepted.
    Kaisa in a filing https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1203/2021120300037.pdf
 did not disclose how many bondholders had consented to the
offer, but said as the minimum acceptance had not been met, "the
exchange offer and consent solicitation will not proceed and
shall lapse automatically."
    Kaisa, like many other Chinese developers facing a liquidity
squeeze, has been scrambling to raise capital by divesting
assets including Hong Kong-listed property management unit,
Kaisa Prosperity Holdings Ltd  2168.HK .
    

 (Reporting by Sameer Manekar in Bengaluru, Editing by Rosalba
O'Brien and Sam Holmes)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))