Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Titan Petrochemicals Group Ltd. > News item |
Titan Petrochemicals prolongs exchange, solicitation for 8½% notes
By Jennifer Chiou
New York, Feb. 3 - Titan Petrochemicals Group Ltd. said it once more extended the exchange offer for its 8½% guaranteed senior notes due 2012, this time to 5 p.m. ET on March 4 from Feb. 3.
The offer had previously been prolonged from 5 p.m. ET on Jan. 6.
The company said that it has entered into discussions with an informal ad hoc committee of noteholders. It previously stated that membership had increased in the ad hoc committee, which is being represented by Milbank, Tweed, Hadley & McCloy LLP in Hong Kong.
Titan said on Dec. 7 that it had begun an offer to exchange new notes, cash and stock for its $315.36 million of outstanding 8½% notes.
For each $1,000 principal amount of the existing notes, the company is offering $199 principal amount of new notes, 3,075 shares and $12.50 in cash.
Titan will issue up to $62,756,640 of new notes in the exchange offer and 969,732,000 new shares, making up 12.9% of the equity after completion of the offer.
Titan is also soliciting consents to amend the existing notes to eliminate substantially all the covenants and eliminate or modify some events of default.
Holders who tender existing notes will waive rights for those notes.
The new notes will be due in 2015 and pay interest at 8½%. The first two interest payments will be payable in kind at the company's option with a step up of 100 basis points.
The new notes will be callable starting March 15, 2011 at 117.
As already reported, the exchange is subject to at least 90% of the existing notes being tendered, the receipt of consents from holders of a majority of the notes and other conditions.
Titan Petrochemicals said the exchange is required because of its "deteriorating financial condition" and that it must "realign its capital structure to better fit its current financial condition and prospect."
Goldman Sachs (Asia) LLC is the global coordinator, lead arranger and co-dealer manager, and ING Bank NV, Singapore Branch is co-dealer manager.
The issuer is a Hong Kong-based trader of petrochemicals and oil products.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.