China's Kaisa offer to extend maturity on $400 million offshore bond lapses

BY Reuters | CORPORATE | 12/02/21 06:42 PM EST

(Reuters) - China's Kaisa Group Holdings Ltd 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 for new notes due June 6, 2023 at the same interest rate if at least 95% of holders accepted.

Kaisa in a filing 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.

(Reporting by Sameer Manekar in Bengaluru, Editing by Rosalba O'Brien and Sam Holmes)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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