2022-05-24 18:11:34
Petroperu launches consent solicitation to dodge default
Source: Global Capital
Peruvian state-owned oil company Petroperu will begin investor calls on Tuesday after launching a consent solicitation that asks bondholders to postpone the company’s obligation to provide audited financial statements for 2021.
On Monday, Petroperu officially launched the consent solicitation, offering consenting bondholders a cash fee of $1.50 per $1,000 of principal amount held — as long as approval reaches a simple majority of investors. The consent solicitation would amend the bond indenture to “extend the timeframe within which the company must deliver its audited financial statements” for 2021 to September 30.
Citi, HSBC and Santander are solicitation agents on the consent solicitation, which targets Petroperu’s two international bonds: $1bn of 4.75% 2032s, and $2bn of 5.625% 2047s. Bondholders have until 5pm New York time on May 31 to give their consent. If the company has failed to achieve the consents by that date, it is likely to enter default as the audit is likely to take at least until July.
Citi will manage logistics on investor meetings, which comprise calls on Tuesday afternoon, Wednesday and Thursday, and in-person meetings in New York on Wednesday and Thursday.
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