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Yanlord Land unit prices US$400m senior notes due 2024 at 6.8%

A UNIT of Yanlord Land has priced its US$400 million senior notes due 2024 at 6.8 per cent, payable semi-annually in arrears, the China-based property developer said on Thursday after midnight in a regulatory filing.

The notes are expected to be issued on Aug 27 by subsidiary Yanlord Land (HK) Co, and listed on the Singapore Exchange (SGX).

Estimated net proceeds from the offering are around US$395 million, which the group says will be used for project development and acquisition, as well as general corporate purposes.

The notes will be guaranteed by the group, and are expected to be rated "BB-" by Standard & Poor’s Ratings Services (S&P) and "Ba3" by Moody’s Investors Services

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Details of the US-dollar bond issue follow an earlier announcement on Wednesday which saw Yanlord Land proposing an issue of the notes with 4.5 years tenure and a non-call of 2.5 years at initial price guidance in the 7.1 per cent area, according to a term sheet seen at the time.

This means that from Feb 27, 2022 onwards, the issuer may redeem up to 35 per cent of the aggregate principal amount of the notes at a redemption price equal to 100 per cent of the principal amount plus any application premium, accrued and unpaid interest as at the redemption date.

In the event of a change of control, the issuer will make an offer to repurchase all outstanding notes at a purchase price equal to 101 per cent of the principal amount plus any accrued and unpaid interest.

DBS Bank, HSBC and Standard Chartered (Singapore) are the joint global coordinators, joint bookrunners and joint lead managers.

Yanlord Land shares closed at S$1.20 on Wednesday, down two Singapore cents or 1.64 per cent.