Nine Dragons Paper, a China-based manufacturer of paper and linerboard for packaging products, yesterday launched a tender to buy back the remainder of its $300 million bond issue maturing in 2013, offering to pay 53 cents to the dollar. The move is in line with a trend seen in the Asian straight debt and convertible bond markets over the past few months as companies take advantage of the sharp drop in bond prices, while at the same time offering investors an exit route. But the fact that Nine Dragons' offer comes less than 10 months after the bonds were issued -- and aims to take back the entire issue -- makes it stand out.
The...
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