17 January 2014, Hong Kong -- Fantasia Holdings Group Co., Limited (“Fantasia” or the “Company”; Stock Code 1777) is pleased to announce that Fantasia has successfully issued US$300 million 10.625% senior notes due 2019.
The issuance was well received by institutional investors, resulting in massive oversubscription, which once again provedFantasia’s high brand value in capital market.
The Company plans to use the net proceeds (after deduction related expenses)amounting to approximately US$294.5million to refinance its existing indebtedness, to finance its existing and new property development projects (including land premium and construction costs), and for other general corporate purposes.
The senior notes issued have beenrated B+ and B2, maintaineda stable outlook by Standard & Poor's and Moody’s Investor Services, Inc.respectively. According to Moody, the issuance of5-year senior notes would increase the liquidity of Fantasia, help the Company finance its land acquisitions and extend the terms of maturityof its debts.
Mr. PAN Jun, Chairman and CEO of Fantasia said, ‘‘The Company has capturedthe market opportunity again and thesenior notes issuedcan replenish extra capital for the Company to strengthen its strategic layout in Tier-1 andTier-2 cities, whichhas further optimized the debt portfolio of the Company by refinancing short-term debts with long-term debts and enabled the Company to healthy and consistently develop its business.’’.
The Companysucceeded in accomplishing its annual sales targetof RMB10billion in 2013and recordedcontract sales of approximately RMB10.174 billion, representing an increase of 26.95% on year-on-year basis. By the end of 2013, the Company hadadequate land bank in Tier-1 andTier-2 cities. It possessedmore than 10 projects in Shenzhen alone, with gross floor area of approximately 2.50 million square meters. Through the issuance of senior notes, the Company will be capable of extending its presence tomore Tier-1 andTier-2 cities with development potentials and obtain parcels of land with low costsin the future, thus laying a solid foundation for the Company’s superior development in 2014.