Sino-Ocean Capital Attempting to Dissuade Holders of RMB 1B Bond ‘20 Sino Ocean Capital 01’ From Exercising Sept. 9 Put; Bond Drops 24 Pts to 66 Today, Aug. 4, on Repayment Uncertainty

Sino-Ocean Capital Holding Ltd., an associate company of Sino-Ocean Group, has been negotiating with holders of its RMB 1 billion ($148 million) corporate bond putable Sept. 9 “20 Sino Ocean Capital 01” to dissuade them from exercising the put, according to two sources familiar with the matter.

However, the same sources said that the company was also now contemplating proposing a one-year extension of the bond if its efforts to dissuade holders from exercising the put are not successful, said the same sources.

The onshore bond dropped about 24 points to 66 this morning, Aug. 4, on concerns over the repayment uncertainty, said the same sources. Sino-Ocean’s $400 million 4.75% notes due 2030 were also down two to three points to 23/24.5, said two buysiders.

A company spokesperson denied that the company was currently considering an extension of the bond but confrimed that it continued to negotiate with holders to persuade them not to exercise the put.

Sino-Ocean Capital announced earlier this week that it would not exercise a call option on the RMB 1 billion bond.

Sino-Ocean’s capital structure is below: