HARBIN, China, Aug. 12 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc.
('Harbin Electric' or the 'Company', Nasdaq: HRBN), a leading developer and
manufacturer of a wide array of electric motors in the People's Republic of
China, today announced that it has completed the repurchase of $26.5 million
aggregate principal amount of its outstanding Guaranteed Senior Secured
Floating Rate Notes, due September 1, 2012 (the '2012 Notes').
The 2012 Notes, in an original aggregate principal amount of $38 million,
were issued on August 29, 2006. The interest rate payable semi-annually on the
2012 Notes was a rate equal to LIBOR plus 3.35%. The six month LIBOR rate was
1.80375% as of March 2, 2009. The Company would begin to make scheduled
principle payment on September 1, 2009 on the 2012 Notes. Citadel Equity Fund
Ltd. ('Citadel') is one of the 2012 Notes holders that held $26.5 million of
the 2012 Notes ('Citadel Notes').
Pursuant to the Letter Agreement dated June 1, 2009 by and among Harbin
Electric and Citadel, the Company was granted the option to repurchase all
(but not part) of the Citadel Notes at any time on or prior to August 31, 2009
for a repurchase price in cash equal to 85% of this aggregate principal amount
of the Citadel Notes plus accrued and unpaid interest thereon to but excluding
the repurchase date.
On August 7, 2009, the Company paid a total of $23,131,997.22 to
repurchase the Citadel Notes, which amount was comprised of $22,525,000
representing 85% of the $26,500,000 aggregate principal amount of the Citadel
Notes plus $606,997.22 representing accrued and unpaid interest on the Citadel
Notes to but excluding the repurchase date of August 11, 2009. Upon completion
of the repurchase, the Citadel Notes were cancelled.
About Harbin Electric, Inc.
Harbin Electric, headquartered in Harbin, China, is a leading developer
and manufacturer of a wide array of electric motors with a focus on innovative,
customized and value-added products. Its major product lines include linear
motors, automobile specialty micro-motors, and industrial rotary motors.
