On November 25, China International Capital Corporation (hereinafter referred to as “CICC”) and Industrial Bank Co., Ltd. (hereinafter referred to as “Industrial Bank”) jointly issued the “Fujian Sunshine Group Co., Ltd. 2018 Phase I Medium Term Notes 2021 Summary of Proposals for the First Holders Meeting of the Year. The meeting will be held off-site at 10:00 am on November 26.
The medium-term notes mentioned above refer to Fujian Sunshine Group Co., Ltd. (hereinafter referred to as “Fujian Sunshine”) in the inter-bank bond market on December 7, 2018. A medium-term note with an amount of 400 million yuan was issued. The abbreviation of the bond: 18 Fujian Sunshine MTN001, the bond code: 101801439, the issuance period: 3 years, the coupon rate: 7.5%, and the subject rating: AA+. The lead underwriter/bookrunner of the bond is CICC, and the joint lead underwriter is Industrial Bank.
According to industry and commerce data, Fujian Sunshine has 5 shareholders in total. It is not difficult to find out that Fujian Sunshine’s actual control persons are natural persons Wu Jie, Lin Tengjiao and Lin Xueying. The share ratios are 46.07%, 43.27% and 10.66% respectively.
According to public information, Lin Tengjiao is the actual controller of Sunshine City (000671.SZ), a listed A-share company, and Wu Jie is the wife of Lin Tengjiao’s brother Lin Weimin. Fujian Sunshine is the largest shareholder of Sunshine City. As of November 3, it holds 16.78% of Sunshine City; Fujian Sunshine, Dongfang Xinlong Asset Management Co., Ltd. and Fujian Kangtian Industrial Group Co., Ltd. are parties acting in concert and hold Sunshine City in total. 41.97% of the shares.
The background of the meeting was that the asset pool commitment was set in the pre-binding clause in the “Chapter 11 Liability for Breach of Contract and Investor Protection Mechanism” in the aforementioned bond prospectus. According to the prospectus, if the asset value of the asset pool decreases due to market price fluctuations, the issuer shall notify the lead underwriter in advance and supplement the asset pool with new stock assets or other assets.
Recently, the lead underwriter of the bond, CICC, has monitored that the 18 Fujian Sunshine MTN001 asset pool has insufficiently covered the principal and interest of the bond due to the large fluctuations in the price of stock assets in the pool. Moreover, the issuer did not restore the original status within the grace period, and the above matters have triggered the conditions for the holding of the holders’ meeting. In addition, Fujian Sunshine’s current liquidity is tight, and bond repayment pressure is relatively high.
In response to the above issues, Industrial Bank, as the convener of this meeting of holders, plans to hold theThe first holders’ meeting of 2021 of the first phase of medium-term notes of Jianyang Sunshine Group Co., Ltd. in 2021″, the holders deliberate and vote on relevant proposals.
The six items include: agreeing to Fujian Sunshine to make an appropriate explanation or provide a relief plan, and unconditionally exempt it from breaching the asset pool agreement; or conditionally exempt from violation of the asset pool agreement, agreeing to the proposal of Fujian Sunshine to increase guarantees for debt financing instruments in the current period. br>
The proposal also includes conditional exemption from violation of the asset pool agreement, agreeing to Fujian Sunshine’s proposal to increase the coupon rate of the current debt by 100BP; or conditional exemption from violation of the asset pool agreement, It is agreed that Fujian Sunshine shall not issue new debt financing instruments from the date of the announcement until the expiry date of the debt financing instruments of the current period.
The above proposals need to attend the holders’ meeting The amount of voting rights held by the holders of debt financing instruments reaches more than two-thirds of the total voting rights of the debt financing instruments in the current period, and has been agreed by more than three-quarters of the voting rights held by the holders of debt financing instruments in the current period. If passed, the aforesaid proposal shall take effect, and shall have the same legal binding force on the issuer, other holders of debt financing instruments who did not attend the meeting of the holders, and who voted against or abstained from the resolution.
Another proposal involves the issue of principal repayment and extension: on agreeing to the issuer to pay the interest of the current period and extend the principal for one year. Proposal to extend interest during the extension period; or agree to the issuer to pay the interest of the current period and extend the principal for one year. During the extension period, the interest rate remains unchanged, and the principal and the interest during the extension period will be redeemed after maturity. If this proposal is passed, the issue will be issued People will pay the interest of the medium-term notes in advance, and the remaining principal and interest will be deferred. This proposal needs to be approved by all holders.