Press release from CNW Group
Boyuan Completes RMB Loan and Announces Retirement of Secured Debentures
Wednesday, May 15, 2013
Boyuan Completes RMB Loan and Announces Retirement of Secured Debentures15:18 EDT Wednesday, May 15, 2013
TORONTO, May 15, 2013 /CNW/ - Boyuan Construction Group, Inc., (TSX: BOY, BOY.DB.A), a growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that its Chinese special purpose operating entity, Zhejiang Boyuan Construction Co., Ltd. ("Boyuan China"), completed a loan transaction with an arm's length China-based lender for the principal amount of RMB 25 million (the "RMB Loan") pursuant to a corporate client entrusted loan agreement between Boyuan China, the lender and a major Chinese bank.
The RMB Loan is for a term of one year, may be prepaid with the lender's approval and may be extended with the lenders' and guarantor's approval. The RMB Loan bears interest at a rate of 23.5% per annum, payable monthly. The RMB Loan is secured by a guarantee from Mainway Management Limited ("Mainway"), a company controlled by Mr. Shou Cailiang, Chairman, President and CEO of the Corporation. The Mainway guarantee is secured by a pledge of 15,735,269 Boyuan common shares owned by Mr. Shou and his wife through Mainway. In addition, Mainway granted an option to an affiliate of the lender to purchase up to 1 million of the Boyuan shares pledged by Mainway exercisable for one year at a price of C$0.33 per share.
Boyuan also announced the retirement of its 11.75% secured convertible debentures due May 15, 2013 (the "Secured Debentures") and is processing the repayment of the Secured Debentures.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2012, Boyuan completed more than 80 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information please visit www.boyuangroup.com.
SOURCE: Boyuan Construction Group, Inc.
For further information:
Boyuan Construction Group, Inc.
Mr. Paul Law, CFO
+(852) 9329 5088
(416) 815 0700 ext. 253