Kaisa's Offshore Bondholders Make New Counter Proposal - Full Term Sheet Issued

PR63131

HONG KONG, Jan. 18, 2016 /PRNewswire=KYODO JBN/ --

Following various news reports, BFAM Partners (Hong Kong) Limited ("BFAM

Partners"), the alternative investment management firm, today confirmed that on

14 January, 2016, a group of large bondholders of offshore debt issued by Kaisa

Group Holdings Limited, including BFAM Partners and Farallon Capital Asia Pte.

Ltd., met with and submitted to the Company's advisors a proposal regarding the

potential restructuring of the Company's offshore debt.

This Proposal is substantially consistent with almost all of the terms of the

Company's proposed restructuring plan as announced on January 10, 2016, does

not introduce any incremental execution lead time or complexity, and at the

same time provides greater return and certainty for the Company's offshore

bondholders as a whole. As such, the bondholder group believes that this

Proposal provides a more comprehensive solution to improving the Company's

financial state than the terms of the existing restructuring that the Company

is contemplating entering into, and is demonstrably in the best interest of all

of the Company's stakeholders.

Benjamin Fuchs, CIO of BFAM Partners said, "We have presented a counterproposal

based on the company's current terms which we do not believe introduces

additional execution risk or complexity. Our proposed terms provide a better

outcome for bondholders and we believe they will gain widespread support. Given

the size of our group it is unlikely that the company can successfully

implement its current proposal and so we encourage bondholders not to sign the

company's RSA. We recommend they join us in urging the company to amend its

terms to reflect our proposal, which is more consistent with the underlying

fundamentals of the business."

The Proposal provides the following key additional benefits as compared to the

Company Proposal:

- Results in a materially higher NPV to bondholders of 87% versus 75% implied

under the Company Proposal

- Provides greater security and certainty of debt service for bondholders, who

otherwise face greater risk as a result of limitations on access to available

cash imposed by the ongoing "onshore" restructuring process

Specifically, the Proposal's terms are substantially consistent with those of

the Company Proposal, except for the following key differences:

- Higher coupon, primarily with respect to the PIK component

  -0.5% cash coupon component in Year 1 (vs. zero under the Company Proposal)

  -Approximately 2%~6% higher PIK coupon (and cash interest toggle) component

in all years (vs. the Company Proposal)

- Lower conversion price for convertible bonds

  -Lower of HK2.34 per share or 125% of the 30-day VWAP post-trading resumption

(vs. HK2.34 under the Company Proposal)

- Additional cash collateral and capital buffer

  -US$200m of 8-year zero-coupon junior capital to be injected by existing

shareholders or onshore creditors and held in escrow for the benefit of

offshore debt service

Please find the detailed term sheet reflecting the new proposal here (

http://photos.prnasia.com/prnk/20160118/8521600321 ).

Enquiries:

Newgate Communications

Richard Barton

M: +852 9301 2056

E: Richard.barton@newgate.asia

SOURCE  BFAM Partners (Hong Kong) Limited