Country Garden Holdings has approached various of its bondholders as it considers launching a potential exchange offer to extend its outstanding USD notes, three sources familiar with the matter said. The company prefers a liability management exercise over a holistic restructuring, sources familiar with the matter said.
The company has so far been current with its offshore debt, and paid coupons this week on its $500 million 4.2% notes due 2026 and its $500 million 4.8% notes due 2030 within a 30-day grace period, as reported
According to data compiled by Reorg, Country Garden has 15 series of USD notes outstanding, with over $9.9 billion in total principal and maturities ranging from 2024 to 2031. Next up, it has to pay $15.4 million interest on its $500 million 6.15% notes due 2025 on Sept. 17. The coupon payment has a 30-day grace period, according to the notes’ offering memorandum.
Sources said the company still wants to put effort into avoiding a material default offshore and therefore will be leaning towards a term-out instead of a holistic restructuring. An offshore default could potentially hinder the company’s ability to issue future equity placements, one of the sources added.
As Reorg reported, certain holders of the company’s USD notes are in touch with financial
and legal advisors
to potentially organize in preparation for any offshore restructuring negotiations.
Onshore, the company managed to obtain holders’ approval to extend its CNY 3.904 billion ($532.8 million) 5.65% onshore private bond “16 Bi Yuan 05” for three years, as reported
. This week, the company also released proposals for a three-year extension on several onshore public bonds, as reported
. Voting on those proposals starts today, Sept. 7.
Country Garden did not respond to a request for comment.