Thu 06/02/2022 03:37 AM
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Central China Real Estate’s offshore notes rose across the curve by around 20 points today, June 2, after company announcement the sale of a stake to a Henan government backed entity, said two buyside sources.

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The $500 million 6.875% notes due August 8, 2022 surged about 14 points to 77.4/79.6 today, while the $197.3 million 7.9% notes due November 2023 rose about 23.3 points to 53.8/55, said the buysiders.

The company announced in the evening on June 1 that its controlling shareholder Joy Bright Investments Ltd. had agreed to sell 860 million shares, or 29% of Central China stock, to Henan Tongsheng Zhiye Co. Ltd, a real estate developer indirectly wholly owned by the Henan provincial government for HKD 688 million ($87.7 million).

Henan Tongsheng also agreed to subscribe to up to HKD 708 million principal of new due 2024 convertible bonds to be issued by Central China while Joy Bright will provide a shareholder loan to supplement Central China’s working capital, as reported.

Central China previously mentioned during an investor call held in March that it is negotiating with Henan-based state-owned enterprises to “rejuvenate” its real estate projects and plans to bring in strategic investors with state-owned backgrounds for its cultural and tourism projects.

In May 2022, the company’s subsidiary Henan Central China Real Estate Construction Co. sold its 51% stake in project company Henan Central China Cultural Development Co. to Henan Hometown Cultural Tourism Development Co., another entity controlled by the Henan government, according to data provider Tianyancha.

Below is Central China’s capital structure:










































































































































































































Central China Real Estate Ltd.


12/31/2021

EBITDA Multiple

(CNY in Millions)

Amount

US$ Amt.

Maturity

Rate

Book


Secured Bank Loans

4,910.6

755.5



Unsecured Bank Loans

39.0

6.0



Secured Other Loans

1,407.7

216.6



Unsecured Other Loans

114.1

17.6



Total Bank and Other Loans

6,471.4

995.6

1.7x

$260 Million 7.5% Senior Notes Due 2025

1,690.0

260.0

Jul-14-2025

7.500%

$300 Million 7.25% Senior Notes Due 2024

1,950.0

300.0

Aug-13-2024

7.250%

$200 Million 7.25% Senior Notes Due 2024

1,300.0

200.0

Jul-16-2024

7.250%

$300 Million 7.75% Senior Notes Due 2024

1,950.0

300.0

May-24-2024

7.750%

$200 Million 7.9% Senior Notes Due 2023

1,300.0

200.0

Nov-07-2023

7.900%

$400 Million 7.65% Senior Notes Due 2023

2,600.0

400.0

Aug-27-2023

7.650%

$300 Million 7.25% Senior Notes Due 2023

1,950.0

300.0

Apr-24-2023

7.250%

$500 Million 6.875% Senior Notes Due 2022

3,250.0

500.0

Aug-08-2022

6.875%

Total Offshore Bonds

15,990.0

2,460.0

5.9x

Total Debt

22,461.4

3,455.6

5.9x

Less: Cash and Equivalents

(5,901.6)

(907.9)

Net Debt

16,559.8

2,547.7

4.4x

Operating Metrics

US$ Amt.

LTM Reorg EBITDA

3,779.5

581.5


Liquidity

Plus: Cash and Equivalents

5,901.6

907.9

Total Liquidity

5,901.6

907.9

Credit Metrics

Gross Leverage

5.9x

Net Leverage

4.4x

Notes:
Source: Company filings, Wind, HKEX, Cbonds
US$ Translation: CNY/USD rate used for USD conversion is 6.5.


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