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Kaisa Group Holdings Ltd.

04/22/2021 | Press release | Distributed by Public on 04/22/2021 03:05

Kaisa Proactively Manages its Liabilities by Cash Tender Offer its Outstanding Senior Notes due Jun 2021 and Issues Additional US$200 million Senior Notes Due Sep 2023

(21 April 2021 - Hong Kong) - Kaisa Group Holdings Ltd. ('Kaisa' or the 'Company', SEHK stock code: 1638, together with its subsidiaries, the 'Group'), a property developer established in Shenzhen with a countrywide foothold in China, is pleased to announce that it is making an offer (the 'Offer') at a purchase price of US$1,001.5 per US$1,000 principal amount to purchase for cash, any and all of its outstanding 7.875% senior notes due 9 June 2021 and 7.875% senior notes due 30 June 2021. The Offer is expected to expire at 4:00 p.m. (London Time) on 27 April 2021. The Company intends to finance the Offer with its internal resources and the proceeds from its issuance of senior notes.

Kaisa said, 'The Offer to purchase for cash two tranches of senior notes due 2021 will lower the Group's short-term debt. As of the end of 2020, the Company has achieved two out of the 3 red line requirements, namely net gearing ratio and cash to short-term debt ratio. Going forward, the Company will continue to control the size of its total borrowings, lower funding cost and expand its financing channels, so as to achieve steady growth.'

At the meantime, the Company has successfully priced an additional US$200 million senior notes due September 2023 to yield 9.15%. The final price has been tightened 30 basis points from the initial price guidance amid a volatile market. The transaction received overwhelming responses from 136 institutional investors with over US$2.2 billion of final book orders, representing an oversubscription of over 10 times. Asian and European investors accounted for 88% and 12% of the subscription orders, respectively. Around 76% of the notes were allocated to fund managers, with the rest of 14% and 10% to private banks and corporates. The additional issue will be consolidated and form a single series with US$500 million 9.75% due 2023.

The Company intends to use the net proceeds of the additional notes issue to refinance its existing medium to long term offshore indebtedness which will become due within one year.

Credit Suisse, Deutsche Bank, Guotai Junan International and HSBC are the joint global coordinators, joint bookrunners and joint lead managers of the transaction. China CITIC Bank International, Haitong International, Standard Chartered Bank and UBS are the joint bookrunners and joint lead managers, and Kaisa Financial Group, Fulbright Securities Limited and Hung Sing Securities Limited are the joint lead managers of the deal.