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California Petroleum plans April 13 redemption of 8.52% notes
By Jennifer Chiou
New York, April 8 - California Petroleum Transport Corp. said it intends to redeem and cancel a portion of its 8.52% first preferred mortgage notes due 2015 on April 13 following the release of the m.t. Front Voyager as collateral on Thursday.
As already reported, the company completed a consent solicitation to amend the indenture of the notes on March 2, receiving consents from holders of $67.98 million, or 99.9%, of the notes.
The company sought to amend and clarify some indenture and related collateral agreement provisions and definitions to provide for the sale of the single-hull m.t. Front Voyager, which was a collateral vessel related to the notes.
California Petroleum said it will redeem the amount of notes allocated to the sold vessel at a redemption price of $1,212.30 per $1,000 principal amount of notes. The final redemption price will include a make-whole premium and accrued interest.
As part of the sale and release in the solicitation, the company said that the charter for the vessel will be amended to permit its sale prior to the current charter expiration date of April 1 if certain bid conditions are met. The charter was also to be modified to permit the mandatory redemption of $10,884,000 of notes.
The Bank of New York Mellon Trust Co. is the trustee.
With registered offices in Boston, California Petroleum is a special-purpose corporation organized solely for the purpose of issuing term mortgage notes and serial mortgage notes on behalf of various owners, including CalPetro Tankers (Bahamas I) Ltd., CalPetro Tankers (Bahamas II) Ltd. and CalPetro Tankers (Bahamas III) Ltd.
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