CDC Corporation (CHINA)

[MrBankRoll]

"CDC Corporation Announces Purchase of Over 50 Percent of Its Outstanding Convertible Notes, Below Par Value, With Second Recent Additional Purchase

Business Wire
Posted: 2009-03-24 08:40:00

CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, announced today that, in addition to a purchase from one of its largest holders announced yesterday, an affiliate of the company also entered into a definitive agreement yesterday to purchase the entire holdings of another holder of the company’s 3.75 Percent Senior Exchangeable Convertible Notes Due 2011 (Notes). Under this agreement, the entire holdings of such other holder will be purchased in two installments, one half of which was purchased yesterday and the purchase of the remaining half is expected to be completed within 30 days after the first closing.

With the closing of this additional purchase yesterday, holdings of Notes from eight of 11 separate Note holders have been purchased by CDC Corporation’s affiliate. Additionally, with this closing, the company has successfully completed the purchase of over 50 percent of its outstanding Notes, representing an aggregate of $85 million in face value of the Notes, at an average price below par value.

"We are extremely pleased with this additional purchase, and have now exceeded a threshold of over 50% of the original $168 million Notes outstanding that have been purchased by us,” said Peter Yip, CEO of CDC Corporation. “We believe this milestone will allow us more flexibility and options as we negotiate with the remaining Note holders. By using a combination of our own internal cash, cash generated from operations and refinancing, we have been able to purchase $85 million in face value of our Notes at an average price that is a discount to par value, with no dilution of shareholder equity as a result of these transactions. As we have stated previously, we believe these negotiated purchases of Notes below par value are fair for both parties in light of current overall economic conditions."

“We continue to remain optimistic about our future, despite the economic headwinds impacting the global economy,” Yip added. “Our core businesses continue to generate cash given the recurring nature of several of our revenue streams combined with the cost reductions we were able to make in 2008 in anticipation of a general slowdown. We plan to resume pursuing strategic and opportunistic acquisitions for expanding our software platform, as well as increasing our marketshare in China for our MMO online games business. We remain confident of our global business which is reinforced by our strong presence in China."

http://money.aol.com/news/articles/qp/pr/_a/cdc-corporation-announces-purchase-of/rfid197340591