Greentown tender offer and exit consent gets investor approval

June 17, 2009 | BY

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Chinese residential property developer Greentown China Holdings' cash tender offer and exit consent has secured the support of investors, as the company…

Chinese residential property developer Greentown China Holdings' cash tender offer and exit consent has secured the support of investors, as the company restructures its capital structures.

Greentown closed its tender offer and consent solicitation to purchase any and all of its outstanding US$400 million 9.00% senior notes due 2013. In doing so, it became the latest China-based company to seek to undertake such a transaction but the first to receive overwhelming investor approval.

Zhejiang Province-based Greentown, which develops luxury residential properties in China, offered note-holders who tendered and consented by the consent date a total consideration of US$850 for every US$1000 of principal amount outstanding of its notes. Approximately 92% of note-holders provided their consents to the exit consent and approximately 90% consented.

The issuer turned to an Anna-Marie Slot-led White & Case team, which included partners Steve Payne and Jeremy Leifer. A Hong Kong-based Davis Polk & Wardwell team, led by Bill Barron [pictured], advised the London branch of Deutsche Bank AG as the exclusive dealer manager.

Greentown primarily develops quality residential properties targeting middle to higher income residents in China.

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