(Bloomberg) -- A key unit of Dalian Wanda Group Co. is asking to extend the maturity date for a $600 million dollar bond as a liquidity crunch deepens for the troubled Chinese conglomerate.
Wanda Properties International Co. wants to push back the maturity on the 7.25% note by almost a year to Dec. 29, 2024, according to a statement to the Hong Kong stock exchange. It’s seeking consent for other amendments, including mandatory partial redemptions in January, May and September next year.
Wanda offered to pay 10% of the principal of the dollar bond in January 2024, 20% in May 2024, 30% in September 2024 and 40% in December 2024, according to people involved in the conversations, asking not to be identified as the matter is private.
The group is facing “challenges in raising new financing or refinancing its existing indebtedness in the international capital markets,” Dalian Wanda Commercial Management Group Co., the guarantor of the bond, said in the statement.
Wanda was once seen as among the few high-quality Chinese issuers in the junk-bond market because it focuses on commercial real estate and asset-light property management business. Tuesday’s statement came after investors rejected a proposal by its mall unit to delay a repayment of 30 billion yuan ($4.2 billion) plus interest due by year-end.
The bond in question is Wanda’s closest offshore dollar bond maturing. It fell 16 cents on the dollar to 46.9 cents in mid-afternoon Tuesday.
The conglomerate has two other notes due in 2025 and 2026, totaling $800 million.
The 2024 and 2025 notes are on pace for a record drop, according to Bloomberg-compiled prices. The 2026 note is set for its worst loss since July.
Wanda also spooked the market and raised governance concerns in July when it gave shifting messages to investors about its ability to repay a $400 million dollar bond due then. The company eventually made the payment.
The consent solicitation agent is Deutsche Bank. The voting deadline for the consent is Dec. 8, 4 p.m. London time. A bondholder meeting will be held on Dec. 13 at Linklaters’ office in Hong Kong.
--With assistance from Alice Huang.
(Updates with bond prices and more background throughout)
©2023 Bloomberg L.P.