Essdar Offers to Buy Blue City Notes at a Discount (Update1) - BusinessWeek

Essdar Investments Ltd., a fund backed by Abu Dhabi’s ruling family, offered to buy notes sold by Oman’s stalled Blue City development at a discount.

Essdar will pay 20 percent of face value for class B1 and class C securities in an offer that closes July 21, the company said in an e-mailed statement today. Holders will get a 1 percentage-point bonus if they sell the junior-ranked notes before July 16.

There are $143 million of Class B1 notes outstanding and $50 million of the Class C securities, according to the statement. The bonds were issued in 2006 and mature in 2016.