New World expects to issue $189 million of new notes after early debt exchange results

By Reuters News

Oct 15 (Reuters) - New World Development 0017.HK said on Thursday it expects to issue about $189.1 million in new secured notes due 2032 after receiving sufficient tenders during the early phase of its debt exchange offer, aimed at easing near-term repayment pressures.


Here are some more details:

  • Last week, the Hong Kong property developer launched a debt exchange offer allowing bondholders to swap some notes due in 2027 and 2028 for new secured debt maturing in 2032

  • The offer covered three US dollar-denominated note series with a combined outstanding principal amount of about $991 million, including notes due in January 2027, June 2027 and February 2028

  • The company said all notes tendered by the early deadline would be accepted in full without scaling - meaning it will buy back 100% of the bonds submitted by investors before the deadline

  • Scaling is the reduction of investors' bond or share tenders when demand exceeds the company's maximum allocation limit

  • Settlement of the early accepted notes is expected on October 20

  • New World, one of Hong Kong's most indebted property developers, has been working to reduce debt, sell assets and strengthen liquidity as it grapples with tight credit conditions and a prolonged downturn in the city's property market

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.