Kaisa : 1638.HK)’s Exchange and Tender Offer Draw Wide Investor Participation Liability Management in Advance See Fruitful Results

(10 May 2021 - Hong Kong) - Kaisa Group Holdings Limited ('Kaisa' or the 'Company', SEHK stock code: 1638, which together with its subsidiaries, is referred to as the 'Group'), a property developer established in Shenzhen with a countrywide foothold in China, is pleased to announce the results of its Exchange and Tender Offer of its senior notes due June 2024. As at the Offer Expiration Deadline, the Company received a total of over US$1,580 million in principal amount of the Existing Notes for exchange, representing approximately 316.0% of US$500 million Exchange Acceptance Amount. The Company also received a total of over US$489 million in principal amount of the Existing Notes for purchase. The Exchange and Tender amount represent approximately 51.8% and 16.0% of the total outstanding principal amount of the Existing Notes, respectively.

Kaisa Group said, 'The advance liability management for the US$3 billion senior notes due June 2024 has successfully reduced the maturity wall in 2024 to approximately US$2.2 billion, thus helping reduce the refinancing risk and achieve the Company's long-term target of lowering the financing cost. Looking ahead, the Company will continue to seek opportunities to repurchase the 2024 notes, in order to continuously optimize the Group's overall debt structure.'

According to the Exchange Offer, the Company has amended the proration terms of the Exchange and Offer Memorandum and has determined to accept for exchange (a) all such Existing Notes validly tendered with the amount below US$400,000 in full, where the acceptance of minimum principal amount of US$200,000 would result in the principal amount of the Existing Notes not purchased and returned to the holders being less than US$200,000; (b) on a proration factor of 29.1625%, which shall be integral multiples of US$50,000, for all such Existing Notes validly tendered with the amount of US$400,000 or above, except (c) in situations where proration would otherwise result in either (i) the Company accepting the Existing Notes from any Eligible Holder in a principal amount of less than US$200,000 or (ii) the principal amount of the Existing Notes not purchased and returned to the holders due to pro rata application being less than US$200,000, the Company will accept a minimum principal amount of US$200,000 only. The Company expects to issue approximately US$500 million in aggregate principal amount of the New Notes pursuant to the terms of the Exchange Offer.

With respect to the Tender Offer, the Company has determined to accept for purchase all such Existing Notes validly tendered at Offer Prices of, or below, 100% of the principal amount of such Existing Notes. The Company expects to pay an aggregate purchase price of approximately US$304 million for all such Existing Notes accepted for purchase and accrued interest thereon, in the amount of approximately US$34.6 per US$1,000 principal amount of the Existing Notes accepted for purchase.

After the completion of the Exchange and Tender Offer, the Company will arrange to cancel the notes, following which approximately US$2.2 billion in aggregate principal amount of the Existing Notes will remain outstanding.