Crudecorp bondholders agreed to waive change-of-control put option

By Angela McDaniels

Tacoma, Wash., Jan. 13 - Crudecorp ASA's bondholders agreed to waive their option to put back their floating-rate subordinated callable bonds due 2017, according to a notice from trustee Norsk Tillitsmann ASA.

Bondholders voted at a meeting on Jan. 13. There were enough bondholders present to form a quorum, and 100% of the votes cast were cast in favor of the proposed resolution.

On Dec. 23, the company said it planned to complete a NOK 118.25 million private placement with investor Ymir Energi AS, following which the investor would own 57.7% of the company's shares. As a result, Ymir Energi planned to make a mandatory offer for the remaining shares. Because Crudecorp also entered into a $25.3 million facility with Credit Suisse, the completion of the private placement would be regarded as a change of control, which would, in turn, constitute a senior event of default.

The company proposed that the private placement and Ymir Energi's subsequent mandatory offer, as well as any additional purchases or subscriptions of shares resulting in Ymir Energi becoming owner of up to 100% of all outstanding shares, not constitute a relevant change of control. Specifically, it asked bondholders to waive their put option under clause 10.3 of the bond agreement.

Stavanger, Norway-based Crudecorp is an oil and natural gas exploration and production company with offices in Houston and Bakersfield, Calif.

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