Lai Sun Development (00488) launches a US dollar bond exchange offer due in 2026.

LAI SUN DEV (00488) announced that on June 15, 2026, the company initiated an exchange offer and consent solicitation for the existing notes due in 2026 with a coupon rate of 5%. The main purpose is to alleviate the group's short-term liquidity pressure, provide additional time to sell certain designated assets to maximize their value, and allow the group to use the proceeds from the sale to repay the new notes. The new US dollar notes have a term of 3 years, bear interest at an annual rate of 8%, and are payable semi-annually. As of the announcement date, the outstanding principal amount of the existing notes is USD 493 million. For every USD 1,000 of the principal amount of the existing notes, noteholders will be eligible to receive: (i) a cash payment of USD 300 and USD 700 of the new notes if certain conditions related to the sale by 3CRC are met; or (ii) USD 1,000 of the new notes if the conditions are not met. It is reported that the group has been actively refinancing its borrowings with multiple creditors to improve its overall liquidity position. In the past 12 months, the group has successfully completed a series of refinancing transactions totaling over HKD 7 billion in principal amount. As part of its ongoing measures to manage its liquidity position, the group has also entered into agreements for the sale of certain assets. These agreements include: (i) the proposed sale of equity associated with 3CRC, which is subject to completion of necessary administrative and procedural steps in the People's Republic of China for settlement, and further announcements will be made once the relevant completion conditions are met; and (ii) the proposed sale of 80% of the group's equity in Camper & Nicholsons International S.A., which is subject to approval by the guarantor's shareholders at an expected shareholder meeting on June 29, 2026, with completion anticipated around July 14, 2026, or shortly thereafter.