Wanda Properties Global Co Ltd's latest three-year bond was
finalised with a yield of 12.375% and coupon of 11%, according
to a term sheet and a company presentation seen by Reuters. The
deal came after the $400 million sale of a two-year bond in
mid-January.
The proceeds will be used for refinancing existing debt, the
term sheet said.
Wanda Commercial Management Group, the property services arm
of Wanda Group and parent of the issuer, said in a presentation
the new transaction was encouraged by the 3.5 times
over-subscription in the last issue, and the outstanding
performance of that bond trading in the secondary market.
It added the final pricing of the sale this week was
tightened by 12.5 basis points, after receiving overwhelming
orders from investors including long-term investors and European
investors, without providing any figures.
A Wanda official confirmed the presentation materials.
According to the term sheet, the final order book exceeded
$830 million, with 87% of the orders coming from Asia, and the
majority from asset and fund managers.
Wanda's transactions could mark a turnaround for China's
high-yield bond market, but market participants expect only
developers with strong balance sheets will be able to tap the
dollar debt market, and Wanda could be a special case for its
commercial property business and asset-light nature.
(Reporting by Scott Murdoch in Sydney and Clare Jim in Hong
Kong; Editing by Clarence Fernandez and Kim Coghill)
(Adds company presentation, other details)
By Scott Murdoch and Clare Jim
SYDNEY/HONG KONG, Feb 8 (Reuters) - A unit of China's
largest commercial property developer Wanda Group has raised
$300 million in its second U.S. dollar bond issue in one month,
a rare bit of good news for the sector as it struggles to emerge
from a bruising debt crisis.
Investors have been staying away from the China's high-yield
bond market since many debt-laden developers defaulted and
extended their payments over the past year.
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