city-telecom-launches-tender-for-highyield-bonds

City Telecom launches tender for high-yield bonds

The fixed-line telecom operator offers to pay up to 75 cents on the dollar for $89.4 million worth of outstanding 2015 bonds.

Fixed-line telecom operator City Telecom HK has joined a group of Asian companies that are taking advantage of depressed debt prices to buy back their dollar bonds. Late Thursday, the Hong Kong-listed company launched a tender for the entire $89.353 million left outstanding of its 8.75% senior bonds due 2015, offering to pay a maximum of 75 cents per dollar of principal.

The total consideration includes a 3 cent payment for accepting a consent solicitation that seeks to eliminate substantially all of the restrictive covenants on the bonds, to reduce the scope of the company's reporting obligations and to amend the circumstances under which the holders can put the bonds back upon a change of...

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