Chinese distressed developers Logan Group and KWG Group Holdings have successfully secured refinancing for a debt facility exceeding $1 billion, backed by luxury real estate in Hong Kong. The refinancing deal, arranged by JPMorgan Chase, was finalized late on August 10, according to sources familiar with the transaction.
The loan, associated with the luxury project The Corniche, was initially a HK$10.2 billion ($1.7 billion) facility set to mature on August 25. The new borrowing facility amounts to $1.05 billion, reflecting a reduction from the original $1.3 billion after both developers settled some outstanding debt. The refinancing includes a 13% annualized yield, with a 30-month tenor and options for two six-month extensions.
Key players in this refinancing include private equity and credit firms Davidson Kempner Capital Management and Dignari Capital Partners HK, each contributing $250 million. Financial institutions RRJ Capital and Deutsche Bank each provided $200 million, while Pacific Investment Management contributed $150 million.
The Corniche project is central to Logan’s strategy to restructure its $8 billion of offshore debt. Although The Corniche is not part of Logan’s broader debt restructuring, securing this refinancing is seen as a critical indicator of the developer’s financial stability and its potential for successfully navigating its debt challenges.
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