Nine Dragons Plans Buyback

Nine Dragons Paper (Holdings) Ltd., plans to buy back $284 million of five-year notes it sold last April at a discount of at least 47 percent to face value, Bloomberg reports. Merrill Lynch & Co. will manage the bond buyback, which will cost the company as much as $160 million.

A statement filed with the Hong Kong Stock Exchange states investors, who sell the bonds back to Nine Dragons by Feb. 23, will receive 53 cents on the dollar plus interest, while those tendering after that date but before March 9 will get 5 cents less, plus coupon payments. The company says it will use internal resources to fund the buyback. It expects to book a capital gain of $133.4 million on the repurchase.

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