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S E A Holdings unit OKs term extension of China Strategic-issued HK$500M notes

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S E A Holdings unit OKs term extension of China Strategic-issued HK$500M notes

S E A Holdings Ltd. unit Rainbow Mark Investments Ltd. agreed to extend the maturity date of HK$500.0 million worth of notes issued by Hong Kong-listed China Strategic Holdings Ltd. for two years.

The notes, which amounted to an aggregate principal amount of up to HK$1.50 billion, were first issued by China Strategic Dec. 16, 2016, and were to have expired Dec. 16. Rainbow Mark had subscribed for HK$500.0 million of notes in the original 2016 issuance.

China Strategic signed a supplemental deed poll with Rainbow Mark on Dec. 13 to push back the expiry of the notes the latter holds for an additional two-year period until Dec. 16, 2020. The notes in question, which originally held a yearly interest rate of 7%, will consequently bear an increased interest rate of 9.5% annually for the third year and 10% for the fourth year.

Under the deed poll, China Strategic will also be able to redeem wholly or partially the HK$500.0 million notes prematurely at a price set at 100% of the principal aggregate amount, together with accrued and unpaid interest recorded Dec. 16, 2019, and/or June 16, 2020.

Separately, China Strategic plans to redeem Dec. 16 HK$200.0 million of the notes held by other holders, which would leave HK$1.30 billion worth of notes outstanding. The issuer will make payment for the repurchased notes Dec. 17.