Peru’s Azucarera amends tender for 6 3/8% notes, extends consent date

By Susanna Moon

Chicago, Oct. 8 – Corporacion Azucarera del Peru SA said it amended the tender offer and consent solicitation for up to $165 million principal amount of its 6 3/8% senior notes due 2022.

The company doubled the consent payment to $5.00 per $1,000 principal amount and lowered the early tender payment to $25.00 per $1,000 principal amount from $27.50 per $1,000 principal amount, according to a company press release.

The early deadline also was extended to coincide with the end of the tender offer at 11:59 p.m. ET on Oct. 22.

Tendered notes may no longer be withdrawn as of the original early tender deadline at 5 p.m. ET on Oct. 7.

As of 5 p.m. ET on Oct. 7, the supplemental indenture condition had not been satisfied and, as a result, there will be no initial settlement date of Oct. 16, the company said.

As previously announced, 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.

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.

Holders who tender will receive total consideration of $850 per $1,000 principal amount of notes, which includes the reduced early tender payment and the increased consent payment, plus accrued interest up to but excluding the settlement date, Oct. 29.

Originally, only those who delivered consents by the consent deadline on Oct. 7 would have received the consent payment. Holders who tendered their notes after the early deadline would have received $820 per $1,000 principal amount plus accrued interest.

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, as noted before.

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 company previously said.

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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