Bond Market News

China South City’s (CSC) dollar bonds jumped over 7% after it obtained consent to extend the maturity of its $348mn 11.5% bonds due February 12, 2022 and $346mn 10.875% bonds due June 26, 2022. CSC obtained consent to extend the maturities to August 12, 2022 and October 26, 2022, respectively, and to have the option of redeeming the notes at any time at par plus accrued and unpaid interest. CSC did not reveal the level of consent reached but had initially set the threshold level at 75%. It plans to pay a consent fee of $5 per $1,000 in principal to those who consent before the early-bird deadline of January 26, and $1.5 to those who consent after the early-bird, but by the expiration date of January 28. CSC’s 10.875% 2022s jumped 8.3% to 80.4 cents on the dollar.

Redsun Properties’ dollar bonds jumped 7-9% yesterday to trade at over 81 cents on the dollar. The rally came after the company announced that it repurchased $48.2mn, or 11% of its 9.95% USD bonds due April 2022 thereby cutting the outstanding principal to $401.8mn.