China Oceanwide Renews Genworth Deal Financing Arrangement

Genworth reported that China Oceanwide has been planning to use a $1.8 billion financing arrangement from Hony Capital to pay for part of the deal.

The Hony Capital financing arrangement was set to expire March 31.

"Genworth has been informed by Oceanwide that the previously disclosed financing arrangement between Oceanwide and Hony Capital for $1.8 billion has been successfully extended to June 30, 2020," Genworth said in an announcement issued Wednesday. "As previously disclosed, Oceanwide had a financing arrangement for debt funding of up to $1.8 billion through Hony Capital to partially finance the acquisition of Genworth. Oceanwide will continue to work on finalizing its financing plan."

Once China Oceanwide finalizes the financing plan, it will then discuss currency conversion and transfer of funds with China's State Administration of Foreign Exchange (SAFE), Genworth said.

Hony Capital is an arm of Legend Holdings of Beijing. Legend Holdings is best known in the United States for being the controlling shareholder of the Lenovo Group.

China Oceanwide has been trying to build a large office building in San Francisco. That project ran into delays. China Oceanwide reported Sunday that Hony Capital has agreed to pay up to $1.2 billion for the project, according to an article that appeared Tuesday in the San Francisco Chronicle.

— Read New Coronavirus Hangs Over China Oceanwide Affiliate's Board Meeting, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook, LinkedIn and Twitter.