Geo Energy receives overwhelming noteholder support
Wednesday, June 7 2017 - 01:51 AM WIB
SGX-listed Geo Energy Resources Limited, which operates coal mines in Indonesia, said that the consent solicitation exercise for Geo Energy?s S$100 million 7.00% notes due January 2018 (the Series 001 Notes) issued under the S$300 million Multicurrency Medium Term Note Program has received strong support from the holders of the Series 001 Note.
The company said in a statement Tuesday that as at the ?Consent Fee Deadline,? holders of S$93,250,000 in aggregate principal amount of the Series 001 Notes have submitted voting instructions to have their votes cast in favor of the Extraordinary Resolution at the meeting (such voting instructions are irrevocable at any time after the Consent Fee Deadline). Accordingly, based on the voting instructions received as at the Consent Fee Deadline (which indicate support from Noteholders representing 93.25 percent in principal amount of the Series 001 Notes currently outstanding), it is expected that the Extraordinary Resolution will be passed at the meeting.
Noteholders who have submitted valid voting instructions before the Consent Fee Deadline in favor of the Extraordinary Resolution will be eligible to receive a Consent Fee of 0.50 per cent on the principal amount of the Series 001 Notes they hold. Such Voting Instructions are irrevocable at any time after the Consent Fee Deadline.
Due to a planned refinancing of the Series 001 Notes prior to their maturity date, the Extraordinary Resolution is intended to, among other things, (i) waive the negative pledge and certain financial covenants which may be breached as a result of a planned refinancing of the Series 001 Notes; and (ii) amend the terms and conditions of the Series 001 Notes for insertion of a call option that allows for early redemption. The waivers are granted provided that the Series 001 Notes are redeemed in full within 15 business days of the Group incurring borrowings to, among others, refinance the Series 001 Notes.
The Consent Solicitation will expire at 10.00 a.m. (Singapore time) on 12 June 2017 (the Expiration Deadline). Noteholders who vote in favor of the Extraordinary Resolution at the meeting or submit valid voting instructions after the Consent Fee Deadline but on or prior to the Expiration Deadline to have their votes cast in favor of the Extraordinary Resolution at the meeting or who vote against the Extraordinary Resolution will NOT be eligible for any Consent Fee.
?This is a key milestone in our plan to refinance the Series 001 Notes before they are due in January 2018. We are pleased that Noteholders of S$93,250,000 of the principal amount of the Series 001 Notes have voted in favor of the Extraordinary Resolution,? said Tung Kum Hon, CEO of Geo Energy in the statement.
?Obtaining the waivers sought and the inclusion of the call option will allow us to have the flexibility to refinance our Series 001 Notes before they are due, will save the Group approximately US$2.0 million in interest cost (less expenses) for the half year 2017 and to optimize and refinance our capital structure to pursue our strategy of increasing and expanding our business as I have earlier stated.?
Editing by Reiner Simanjuntak