Latest news with #NewWorldDevelopment
Yahoo
5 hours ago
- Business
- Yahoo
New World's $11B Lifeline: Will Hong Kong's Most Indebted Developer Survive the Countdown?
New World Development (NDVLY) is inching closer to sealing a massive HK$87.5 billion ($11.1 billion) loan refinancing, potentially giving the debt-laden Hong Kong builder some much-needed breathing room. After months of tense negotiations with over 50 lenders, people familiar with the talks say the company has now secured preliminary consent from all partiesincluding banks that had initially pushed back. But there's still a clock ticking: written approvals must land by June 30, or the deal could unravel entirely. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. If finalized, the agreement would extend HK$63.4 billion ($8.1 billion) in near-term maturities to 2028, easing immediate pressure on New World's balance sheet. Roughly 40 assetsincluding New World Tower and the prized Victoria Docksidehave been pledged as collateral to secure the deal. Another HK$24.1 billion in longer-dated loans will remain on their original timelines, though with added credit enhancements and stricter collateral terms. The refinancing comes as part of a broader fight for survival, with investors increasingly concerned about the company's ability to navigate Hong Kong's prolonged property downturn and rising debt costs. The company isn't stopping there. New World is also seeking a separate HK$15.6 billion loan backed by Victoria Dockside, testing whether it can still tap fresh capital markets amid growing skepticism. Earlier this year, the developer delayed interest payments on four perpetual notes, triggering a sharp selloff in its dollar bonds. While this refinancing could help buy time, the path forward may still be rockyand investors are watching closely to see whether the firm can stabilize, or if this lifeline is just a pause before the next storm. This article first appeared on GuruFocus.
Bloomberg
9 hours ago
- Business
- Bloomberg
HK Builder New World Nears $11 Billion Loan Refinancing Deal
New World Development Co., one of Hong Kong's most indebted builders, is close to securing a crucial HK$87.5 billion ($11.1 billion) loan refinancing deal, according to people familiar with the matter, the culmination of months of negotiations as it raced to secure a lifeline amid a deepening liquidity crisis. New World has received preliminary consent from all the lenders for the refinancing deal, even from those that had previously resisted, the people said, asking not to be identified discussing private matters. A few of the banks are still working on formal written commitments, the people added.
Time of India
a day ago
- Business
- Time of India
New World Development has paid dollar bond interest due Monday: Source
HONG KONG | BENGALURU: New World Development , a major Hong Kong property developer , has paid interest due Monday on a dollar bond, a source with knowledge of the transaction said on Tuesday, providing temporary relief to the market about its liquidity. New World, which has one of the highest debt ratios among its peers and also changed its CEO twice last year, said earlier this month it would defer coupon payments worth $77.2 million on four perpetual bonds scheduled for June. New World declined to comment on the senior bond interest payment. New World's coupon worth $5.1 million for its 5.675% June 2027 notes was due June 16, with a grace period of 14 days. While postponing a perpetual bond coupon payment does not constitute a default, failing to pay a senior bond coupon on time does. Bloomberg News first reported the coupon payment on Tuesday. According to Bloomberg News, New World has been in talks with lenders for months to complete a HK$87.5 billion refinancing deal by the end of June and gained support for 87% of loan refinancing from banks last week. Financial markets are closely watching the firm's attempts to increase cash flow as any deepening of its debt problems could trigger a crisis reminiscent of the crash in mainland China that started in 2021 and led to scores of company defaults including former industry behemoth Evergrande. S&P Global said in a report last week that New World's deferral on perpetual bond coupon payments could trigger cascading effects where homebuyers lose confidence and delay purchases as developers cut prices to lure sales. Hong Kong's home prices could drop 5%-7% this year in such a scenario. "We believe property developers will prioritize cash flow over margins amid the supply overhang and demand uncertainties," it said. Smaller banks with concentrated exposure to highly leveraged developers or non-prime properties would likely come under more pressure as a result, the credit rating agency added. New World's 5.675% bond was bid at 64.125 cents on the dollar, according to LSEG data, around the same level as Monday. Its shares dropped 2.1% in morning trade, underperforming a 0.1% decline in the broader market.
Bloomberg
2 days ago
- Business
- Bloomberg
New World Seals Deal for Louis Vuitton's New Hong Kong Megastore
Hong Kong's New World Development Co. has secured an agreement with Louis Vuitton to open a new megastore in the financial hub, according to people familiar with the matter, as global luxury giants eye bigger, more unique spaces to lure wealthy shoppers. The store is expected to open at the end of 2026 at New World's glitzy K11 Musea mall, following extensive renovations on a space that will be one of the label's largest in Asia, some of the people said, asking not to be identified discussing matters that are not yet public.
Business Times
3 days ago
- Business
- Business Times
New World bondholders receive interest payment on dollar note
[HONG KONG] New World Development has paid interest due Monday (Jun 16) on a dollar note, according to several bondholders, giving the indebted Hong Kong builder some breathing room as it works to complete an HK$87.5 billion (S$14.3 billion) loan refinancing deal. The company faced US$5.1 million in interest payments due Monday on the 5.875 per cent bond, according to Bloomberg calculations. Investors were closely monitoring the deadline after the builder recently decided to defer coupon payments on four perpetual notes. The payment was crucial for New World, as an event of default could be triggered if it failed to honour the coupon within 14 days of the due date, according to an offering document seen by Bloomberg News. It can sometimes take two to three days for dollar bondholders to receive interest payments once they are initiated. New World did not immediately respond to a request for comment. New World, which is grappling with HK$210.9 billion of liabilities, is one of the most indebted of Hong Kong's major developers. Any signal of a possible default by the builder, controlled by the family of Hong Kong tycoon Henry Cheng, could intensify concerns about sluggish real estate market conditions and possible spillover effects. The builder has prioritised talks with banks for months to secure the loan refinancing deal to ease its liquidity stress. Separately, it is also using one of its most valuable assets in Hong Kong – a harbour complex that houses luxury mall K11 Musea – to seek a new loan of as much as HK$15.6 billion. BLOOMBERG
