Sidley represented leading Chinese real estate developer Guangdong – Hong Kong Greater Bay Area Holdings Limited (HKEX: 1396, Company) in connection with the consent solicitation of its approximately US$439.1 million in principal amount of variable rate senior notes due 2029, which added a redemption option in the terms of such senior notes to allow the Company to redeem all of such notes with newly issued mandatory convertible bonds (MCBs). Requisite consents have been received.
After the successful completion of the consent solicitation (subject to all applicable approvals), the Company would be able to redeem substantially all of its offshore debt with the MCBs in an aggregate principal amount of approximately US$265.3 million. This will significantly optimize its balance sheet structure, effectively improve the operating cash flow, reduce debt, and enhance operational efficiency for the Company. If the redemption occurs and the MCBs are converted into shares, it would be the first Hong Kong-listed Chinese real estate company to have successfully equitized substantially all of its offshore debt.
The Sidley team was led by partner Renee Xiong. Other team members included senior managing associate Jacob Zhao and associate Jay Jing.
