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Bond Market News
Sino-Ocean Creditors Make Counter Restructuring Proposal
August 21, 2024
Sino-Ocean’s creditors have made a counter revision to the developer’s initial restructuring proposal. Sino-Ocean plans to restructure about $5.6bn in offshore debt, including bonds and loans. The counter proposal seeks to restructure outstanding bank facilities into two new loans – an 8Y loan with no haircut, or a 5Y loan that allows bondholders to exchange every $100 of debt for $85 in loans, both of which carry an interest rate of 4%. Bondholders, could receive new 8Y notes at par, or exchange every $100 of existing notes into $60 of new 5Y notes with a 4% coupon. There is also an option for mandatory convertible bonds. In comparison, Sino-Ocean’s initial proposal was to restructure about $5.6bn in aggregate principal into $2.2bn of new debt with an interest rate of 3%, with remaining claims exchanged into mandatory convertible bonds or new perps. As per a source, the creditors’ proposal is unlikely to be accepted by the developer as it might be beyond its ability to meet the obligations.
Sino-Ocean’s dollar bonds are trading at distressed levels of 7 cents on the dollar.
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