Hong Kong – LAWFUEL – Law News, Law Jobs Network – International law firm Sidley Austin acted as U.S. counsel to the initial purchasers JPMorgan and UBS in connection with Greentown China Holdings Limited’s (Greentown) issuance of its US$400 million 9% Senior Notes due 2013, including “high yield” covenants, pursuant to Regulation S and Rule 144A.
Matthew Sheridan, a partner in Sidley’s Hong Kong office, led the transaction. This is the fifth high yield bond offering that Sidley has worked on in Asia to have closed successfully this year.
Mr. Sheridan notes, “The special features of this transaction included structuring the covenants to allow the company flexibility to invest in minority-owned entities, within the framework of traditional high yield covenants. The challenge is to introduce complex products like high yield debt, particularly in Asia, where the product is not yet prevalent. We particularly enjoy working with issuers and underwriters to expand the market for this product.”
This latest transaction is the third occasion in which Sidley has advised the underwriters in connection with a transaction for Greentown. In January 2006, Sidley represented JPMorgan in connection with Greentown’s US$150 million convertible bond offering and in July 2006, Sidley also acted for the underwriters, JPMorgan and UBS, in connection with Greentown’s US$400 million initial public offering, with a listing on the main board of The Stock Exchange of Hong Kong (SEHK) and international placements pursuant to Rule 144A and Regulation S. Partners Timothy Li and Constance Choy of Sidley’s Hong Kong office acted on those transactions.
Greentown, headquartered in Hangzhou (Zhejiang Province), China, is one of the leading residential property developers in China.