Offering Circular
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STRICTLY CONFIDENTIAL — DO NOT FORWARD THIS OFFERING IS AVAILABLE ONLY TO INVESTORS WHO ARE NON-U.S. PERSONS OUTSIDE OF THE UNITED STATES. IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the offering memorandum attached to this e-mail. You are therefore advised to read this disclaimer carefully before reading, accessing or making any other use of the attached offering memorandum. In accessing the attached offering memorandum, you agree to be bound by the following terms and conditions including any modifications to them from time to time, each time you receive any information from us as a result of such access. Confirmation of Your Representation: You have accessed the attached offering memorandum on the basis that you have confirmed your representation to Credit Suisse Securities (Europe) Limited, China Merchants Securities (HK) Co., Ltd. and Haitong International Securities Company Limited (the ‘‘Joint Lead Managers’’) that (1) you and any person you represent are non-U.S. persons outside the United States and to the extent you purchase the securities described in the attached offering memorandum, you will be doing so pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the ‘‘Securities Act’’), and (2) that you consent to delivery of the attached offering memorandum and any amendments or supplements thereto by electronic transmission. The attached offering memorandum has been made available to you in electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of transmission and consequently none of the Joint Lead Managers or any person who controls them or any of their directors, employees, representatives or affiliates accepts any liability or responsibility whatsoever in respect of any discrepancies between the offering memorandum distributed to you in electronic format and the hard copy version. We will provide a hard copy version to you upon request. Restriction: The attached offering memorandum is being furnished in connection with an offering exempt from registration under the Securities Act solely for the purpose of enabling a prospective investor to consider the purchase of the securities described herein. You are reminded that the information in the attached offering memorandum is not complete and may be changed. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTION, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE OR LOCAL SECURITIES LAWS. Except with respect to eligible investors in jurisdictions where such offer is permitted by law, nothing in this electronic transmission constitutes an offer or an invitation by or on behalf of either the issuer of the securities or the Joint Lead Managers to subscribe for or purchase any of the securities described herein. In addition, access to this electronic transmission has been limited so that it shall not constitute a general advertisement or solicitation in the United States or elsewhere. If a jurisdiction requires that the offering be made by a licensed broker or dealer and any of the Joint Lead Managers or any affiliate of the Joint Lead Managers is a licensed broker or dealer in that jurisdiction, the offering shall be described as being made by such Joint Lead Manager or their respective affiliates on behalf of the issuer in such jurisdiction. You are reminded that you have accessed the attached offering memorandum on the basis that you are a person into whose possession this offering memorandum may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located and you may not, nor are you authorized to, deliver this offering memorandum, electronically or otherwise, to any other person. If you have gained access to this transmission contrary to the foregoing restrictions, you should not, and will be unable to, purchase any of the securities described therein. Actions That You May Not Take: You should not reply by e-mail to this electronic transmission, and you may not purchase any securities by doing so. Any reply e-mail communications, including those you generate by using the ‘‘Reply’’ function on your e-mail software, will be ignored or rejected. YOU ARE NOT AUTHORIZED AND YOU MAY NOT FORWARD OR DELIVER THE ATTACHED OFFERING MEMORANDUM, ELECTRONICALLY OR OTHERWISE, TO ANY OTHER PERSON OR REPRODUCE SUCH OFFERING MEMORANDUM IN ANY MANNER WHATSOEVER. ANY FORWARDING DISTRIBUTION OR REPRODUCTION OF THE ATTACHED OFFERING MEMORANDUM, IN WHOLE OR IN PART, IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS. You are responsible for protecting against viruses and other items of a destructive nature. Your use of this e-mail is at your own risk and it is your responsibility to take precautions to ensure that it is free from viruses and other items of a destructive nature. OFFERING MEMORANDUM CONFIDENTIAL China Evergrande Group 中 國 恒 大 集 團 (incorporated in the Cayman Islands with limited liability) US$500,000,000 7.0% Senior Notes due 2020 US$1,000,000,000 8.25% Senior Notes due 2022 Issue Price 2020 Notes: 100% Issue Price 2022 Notes: 100% China Evergrande Group (formerly known as Evergrande Real Estate Group Limited) or the Company, is offering 7.0% Senior Notes due 2020 in the aggregate principal amount of US$500,000,000 (the ‘‘2020 Notes’’) and 8.25% Senior Notes due 2022 in the aggregate principal amount of US$1,000,000,000 (the ‘‘2022 Notes’’ and together with the 2020 Notes, the ‘‘Notes’’). The 2020 Notes will bear interest at the rate of 7.0% per annum and will mature on March 23, 2020. The 2022 Notes will bear interest at the rate of 8.25% per annum and will mature on March 23, 2022. Interest will be payable semi-annually in arrears on March 23 and September 23 of each year, beginning September 23, 2017. The Notes are senior obligations of the Company guaranteed by certain of its existing subsidiaries, or the Subsidiary Guarantors, other than (1) those organized under the laws of the PRC, and (2) certain other subsidiaries specified in the section entitled ‘‘Description of 2020 Notes’’ and ‘‘Description of 2022 Notes.’’ We refer to the guarantees by the Subsidiary Guarantors as Subsidiary Guarantees. Under certain circumstances and subject to certain conditions, a subsidiary of the Company may instead provide a limited-recourse guarantee, or JV Subsidiary Guarantee. We refer to the subsidiaries providing a JV Subsidiary Guarantee as JV Subsidiary Guarantors. The Notes and the Subsidiary Guarantees provided by a subsidiary guarantor pledgor will be secured by the capital stock of the Subsidiary Guarantors, in each case to be shared on a pari passu basis with holders of the Existing Pari Passu Secured Indebtedness and any other secured parties with respect to the Permitted Pari Passu Secured Indebtedness, subject to any other Permitted Liens and the Intercreditor Agreement. On or after March 23, 2020, with respect to the 2022 Notes the Company may on any one or more occasions redeem all or any part of such Notes, at the redemption prices (expressed as percentages of principal amount) set forth in ‘‘Description of 2022 Notes — Optional Redemption,’’ plus accrued and unpaid interest, if any, on such 2022 Notes redeemed, to (but not including) the applicable date of redemption, if redeemed during the twelve-month period beginning on March23ofthe years indicated in such section. At any time and from time to time, we may redeem up to 35% of each series of Notes, at a redemption price of 107% of the principal amount with respect to the 2020 Notes and 108.25% of the principal amount with respect to the 2022 Notes, plus accrued and unpaid interest, if any, in eachcase, using the net cash proceeds from sales of certain kinds of capital stock. In addition, we may redeem the Notes, in whole but not in part, at any time prior to March 23, 2020 at a price equal to 100% of the principal amount of such Notes plus (i) accrued and unpaid interest (if any) to the redemption date, and (ii) a premium as set forth in this offering memorandum. Upon the occurrence of a Change of Control Triggering Event (as defined in the indentures governing the Notes, or the Indentures), we must make an offer to repurchase all such Notes outstanding at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of repurchase. The Notes will be (1) at least pari passu in right of payment against the Company with the Existing Pari Passu Secured Indebtedness and all other unsecured, unsubordinated Indebtedness of the Company (subject to any priority rights of such unsecured, unsubordinated Indebtedness pursuant to applicable law), (2) senior in right of payment to any existing and future obligations of the Company expressly subordinated in right of payment to the Notes, (3) guaranteed by the Subsidiary Guarantors and the JV Subsidiary Guarantors (if any) on a senior basis, subject to certain limitations, (4) effectively subordinated to the other secured obligations of the Company, the Subsidiary Guarantors and the JV Subsidiary Guarantors, to the extent of the value of the assets serving as security therefor (other than the Collateral), and (5) effectively subordinated to all existing and future obligations of the Non-Guarantor Subsidiaries. In addition, applicable law may limit the enforceability of the Subsidiary Guarantees and the JV Subsidiary Guarantees (if any) and the pledge of any collateral.