India’s REC pushes back consent deadline in bid to amend four notes

By Susanna Moon

Chicago, Feb. 28 – REC Ltd. is extending the consent fee deadline to 11 a.m. ET on March 8 in the solicitation for three series of notes, according to a company notice.

The voting deadline is also set for 11 a.m. ET on March 8.

As announced Feb. 20, the company is soliciting consents for its $400 million of 3.068% notes due 2020, its $700 million of 5¼% notes due 2023, its $450 million of 3 7/8% notes due 2027 and its $300 million of 4 5/8% notes due 2028.

The issuer will pay a consent fee to holders who vote for the proposal by the consent fee deadline, which was originally set for 11 a.m. ET on March 1.

The consent fee will be $15 per $1,000 of notes for the 3.068% notes, $5 per $1,000 of notes for the 5¼% notes, $50 per $1,000 of notes for the 3 7/8% notes and $30 per $1,000 of notes for the 4 5/8% notes.

The company previously said it is seeking approval from holders for a waiver of some rights of holders and modification to the terms and conditions of the notes, each in connection with the sale by the government of India of its existing shareholding in the issuer to Power Finance Corp. Ltd.

Under the proposed extraordinary resolution, the issuer is asking holders to waive any right to require an early redemption or prepayment of the notes by exercising their change-of-control redemption right or triggering an event of default.

The issuer is also seeking to amend the definition of “change of control” under the terms and conditions relating to the redemption right and to delete the relevant event of default.

A noteholder meeting is scheduled for 8 p.m. ET on March 13.

Barclays (+852 2903 3266, +44 20 3134 8515, 800 438-3242, 212 528-6581 or liability.management@barclays.com), Citigroup Global Markets Ltd. (+852 2501 2693, +44 20 7986 9000, 212 723-6106 or liabilitymanagement.asia@citi.com), Hongkong and Shanghai Banking Corp. Ltd. (+852 2822 4100, +44 20 7992 6237 or liability.management@hsbcib.com) and Standard Chartered Bank (+65 6596 8807 or liability_management@sc.com) are solicitation agents. D.F. King (+44 20 7920 9700, +852 3953 7230, 800 549-6864 toll free or 212 269-5550 for banks and brokers or rec@dfkingltd.com) is the information and tabulation agent.

Formerly Rural Electrification Corp. Ltd., REC is a public infrastructure finance company based in New Delhi. The company promotes rural electrification projects across India.

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