nine-dragons-offers-to-buy-back-bonds-at-par

Nine Dragons offers to buy back bonds at par

The paper manufacturer uses its cash resources to launch a second tender for its outstanding bonds, while cash-strapped Powerchip is forced to pay its CB investors partly in shares.

Hong Kong-listed Nine Dragons Paper is making a second attempt to get rid of its senior bonds which have become more expensive for the company following a ratings downgrade by Standard Poor's in December last year. The Chinese paper board manufacturer yesterday launched a tender offer through Deutsche Bank for the entire $118.6 million that remains outstanding of its 7.875% bonds due 2013, offering to pay the principal back in full to bondholders who tender before the early deadline on July 22.

This is the second time this year that Nine Dragons has tendered to buy back the bonds. In FebruaryMarch it bought back 58% of the principal amount outstanding at that time, or...

¬ Haymarket Media Limited. All rights reserved.

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