12:43 AM EDT, 08/04/2022 (MT Newswires) -- Shimao Services Holdings (HKG:0873) will pay the consent fee today, Aug. 4, after obtaining authorization to waive its redemption obligation for the company's HK$3.11 billion ($396.2 million) worth of 2.25% convertible bonds due on Oct. 31.
The consent solicitation was sought after the property manager's trading suspension between May 3 and June 23 exceeded 30 trading days, triggering an event of redemption and giving bondholders the right to demand immediate payment.
To secure support, Shimao offered to pay a consent fee of HK$2,500 per HK$1 million principal amount of the bonds.
As part of a supplemental agreement, the Shimao Group (HKG:0813) unit said it will redeem a portion of the 2.25% bonds ahead of their maturity, according to a late Wednesday disclosure.
The company will redeem HK$1.39 billion in the outstanding principal amount of the bonds on Aug. 18.