Azucarera tenders, seeks consents for $165 million 6 3/8% notes

By Susanna Moon

Chicago, Sept. 25 – Peru’s Corporacion Azucarera del Peru SA said it began a tender offer and consent solicitation for up to $165 million principal amount of its 6 3/8% senior notes due 2022.

Azucarera is tendering for the notes in order to replace some of its outstanding dollar-denominated debt with debt denominated in Peruvian nuevos soles, which is expected to reduce the company’s exposure to market risk related to currency exchange movements, according to a company press release.

The company is soliciting consents to amend the notes indenture to allow incurring senior unsecured debt to refinance a new bridge loan that will be used to finance the tender offer and, after that, to incur debt under the general category of permitted debt.

The proposal requires consents from holders of at least a majority of the outstanding principal amount of the notes.

The total purchase price will be $850 and a consent payment of $2.50 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 7, the early tender deadline or consent deadline.

The total amount includes an early tender payment of $27.50 per $1,000 principal amount.

Those who deliver consents by the consent deadline will receive the consent payment.

Holders who tender their notes after the early deadline will receive $820 per $1,000 principal amount.

The tender offer will end at 11:59 p.m. ET on Oct. 22.

The company also will pay accrued interest up to but excluding the settlement date, which will be Oct. 16 for early tendered notes and Oct. 29 for remaining tenders.

Holders may tender their notes in the offer and thereby consent to the proposed amendments in the solicitation or they may consent to the proposed amendments in the solicitation without tendering their notes.

Those who tender their notes will be deemed to have consented to the proposed amendments. But holders may deliver consents without also tendering their notes.

The tender offer and the consent solicitation are conditioned on obtaining financing and executing a supplemental indenture, the press release noted.

BofA Merrill Lynch (888 292-0070 or 646 855-8988), Credicorp Capital (+511 416333 ext. 40316) and Scotiabank (800 372-3930) are the dealer managers. D.F. King & Co., Inc. (212 269-5550, 866 416-0576 or caperu@dfking.com) is information agent.

Coazucar is part of Grupo Gloria, an agribusiness holding company based in Lima, Peru.

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