Hope Education Group launches consent solicitation for convertible bonds

Hope Education Group (HKEX:1765) has announced a consent solicitation to restructure its outstanding US$271.1 million zero coupon guaranteed convertible bonds due in 2026. The company seeks to add an early redemption option, allowing it to redeem the bonds in full between a yet to be determined Restructuring Effective Date and September 30, 2025, by paying a Settlement Amount to Bondholders. In return, consenting bondholders will receive a consent fee of 1.0% of the principal amount of the bonds. The move aims to alleviate near-term liquidity pressures, considering macroeconomic headwinds and challenges in the PRC education sector. The consent solicitation is conditional on a number of factors including achieving the required consent threshold, and the implementation of the changes require to complete the redemption by the Longstop Date. The consent solicitation is supported by a group of initial consenting creditors ("AHG") via a restructuring support agreement (“RSA”)