New City Development plans to issue $355 million in senior notes and announced a placement of new shares raising HKD 469 million earlier this month.

On February 26, Sun City Development (01030.HK) announced that its subsidiary, Sun City Global Limited (hereinafter referred to as “Sun City Global”), plans to issue $355 million of secured senior notes due 2029, with an interest rate of 11.8%, and an issue price of 97.095% of the principal amount.

The note issuance is expected to be completed by March 9, with initial buyers being Longstone Capital Management Limited. The announcement states that the total proceeds from the note issuance will be approximately $344.7 million, intended to fund the May 2026 purchase offer, refinance existing debt, and for general corporate purposes.

The day before, Sun City Development issued a notice that Sun City Global launched cash purchase offers for its May 2026 (ISIN: XS2290806285) and September 2027 (ISIN: XS3192214685) US dollar-denominated senior notes, and simultaneously issued new notes.

For the May 2026 notes, the announcement states that the company intends to purchase all validly submitted notes, with an outstanding principal amount of $404 million. For the September 2027 notes, the announcement states that this is a maximum purchase offer, with the maximum accepted amount set between $60 million and $120 million, at the company’s full discretion. The current outstanding principal amount of these notes is $160 million.

The announcement indicates that the purchase offer has a “priority acceptance” mechanism. Qualified holders who subscribe to the new notes and participate in the offer will receive priority acceptance; if a holder participates in both offers, the “aggregated priority amount” will be equal to the principal amount of the new notes allocated to them, and they can freely allocate between the two offers.

This is Sun City Development’s second financing announcement this year. On February 5, Sun City Development announced that it had entered into a placement and subscription agreement with its controlling shareholder, Fuyu Hong Kong Investment Limited, and the placement agent, to sell 198 million existing shares through a “first old, then new” method at HKD 2.39 per share. The net proceeds from the placement are approximately HKD 469 million, intended for future development, repayment of maturing debt, and general working capital for the group.