Methanex completes 7¾% note consent solicitation

New York, Dec. 8 - Methanex Corp. (Ba1/BBB-) said it had successfully completed its previously announced solicitation of consents to a proposed amendment to the indenture governing its 7¾% notes due 2005.

Vancouver-based Methanex, the world's largest producer and marketer of methanol, said that the notes' indenture provides that Methanex may not make any restricted payment if, as a result, its consolidated net worth, which approximates shareholders' equity, would be less than US$850 million. The noteholders gave their consent to modifying the definition of consolidated net worth to add back up to $100 million of non-cash write-downs recorded by Methanex from Jan. 1, 2002 to Sept. 30, 2003 and up to an additional $100 million of non-cash write-downs recorded by Methanex after Sept. 30.

The company further said that the amendment lets Methanex maintain its financial flexibility notwithstanding a reduction in consolidated net worth as a result of recent non-cash write-downs of assets. Consolidated net worth as of Sept. 30, as calculated after giving effect to the amendment and the recent write-downs, was about US$968 million.

Goldman, Sachs & Co. acted as the solicitation agent for the consent solicitation. The information agent for the consent solicitation was Mellon Investor Services LLC.

© 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.