Petroleos del Peru Petroperu seeks consents for two series of notes

By Mary-Katherine Stinson

Lexington, Ky., May 23 – Petroleos del Peru - Petroperu SA launched a consent solicitation for holders of its outstanding 4¾% notes due 2032 (ISIN: US716564AA72, USP7808BAA54) and 5 5/8% notes due 2047 (ISIN: US716564AB55, USP7808BAB38) to approve certain proposed amendments to the indentures governing the notes, according to a press release Monday.

The proposed amendments would extend the timeframe within which the company must deliver 2021 audited fiscal year-end statements and provide that failure by the company to deliver them by the deadline would constitute a default event and not be subject to a cure period.

Noteholders who deliver their consent by the deadline and do not revoke it will be paid a consent fee of $1.50 for each $1,000 principal amount of notes.

A majority of noteholders from both series of notes must consent before the consent fee will be paid.

The consent solicitation expires at 5 p.m. ET on May 31, which is also the revocation deadline.

The offer is also subject to certain conditions, including the satisfaction of the CESCE amendment condition.

Under its CESCE facility agreement, the company has sent an amendment request to extend the timeframe within which the company must deliver 2021 audited fiscal year-end statements to Sept. 30.

The CESCE agreement lists the company as the borrower and Deutsche Bank SAE as administrative agent and is guaranteed by Compania Espanola de Seguros de Credito a la Exportacion, SA, Compania de Seguros y Reaseguros, SME and the Spanish Export Credit Agency CESCE.

The company states it has coordinated with CESCE and the administrative agent and it expects a majority of the lenders under the CESCE facility agreement, representing the required lenders, will agree to the requested amendment.

Bank of New York Mellon is the indenture trustee.

Citigroup Global Markets Inc. (212 723 6106), HSBC Securities (USA) Inc. (888 HSBC-4LM) and Santander Investment Securities Inc. (212 940-1442) are acting as solicitation agents.

Global Bondholder Services Corp. is the tabulation and information agent (855 654-2014).

Petroperu is a state-owned petroleum company based in Lima.

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