2022.01.12
Times China Repurchases USD 11 Million in Mature Notes from the Open Market for the Optimization of Its Debt Structure
On January 12, 2022, Times China Holdings Limited (stock code: 01233.HK, hereinafter referred to as "Times China"), on January 12, 2022, announced that during the period from January 10 it had repurchased USD 11 million worth of mature notes from the open market, with all such notes coming due in April.
Times China has just two batches of senior notes due this year: notes due on April 20, 2022, with an interest rate of 5.3% and principal totaling USD 200 million; and notes due on April 26 with an interest rate of 5.75% and principal of USD 225 million. The repurchase involved USD 5 million in notes with an interest rate of 5.3% and USD 6 million in notes with an interest rate of 5.75%, thus serving to optimize Times China's debt structure.
The Company believes the repurchase of notes will help reduce its future financial expenditures and debt-asset ratio, thus being consistent with the interests of the Company and its shareholders. The Company will continue to monitor market conditions and its financial structure, whereupon it may repurchase additional notes when necessary.
Times China has, in recent years, endeavored to reduce its leverage level for debt structure optimization. As of June 30, 2021, Times China's total interest-bearing debt decreased by RMB 6.6 billion (nearly 11%) as compared to the close of 2020. Moreover, the Company has implemented considerable debt management. In terms of domestic bonds, the principal and interest on "18 Times 14 Bonds" and "Yuewan 01 Senior Bonds" were paid in advance in December of 2021, totaling RMB 1,798 million. The first semester of 2022 has no corporate bond due. In terms of overseas bonds, apart from the two batches of notes due in April, as were involved in the latest repurchase, there are no other senior notes due in 2022.
Times China, in addition to repurchasing bonds from the bond market, has expended approximately HKD 60.45 million in a series of share repurchases since 2021, thus demonstrating the management's confidence in the Company and its future.
