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Phoenix gets needed consents for 7.45% bonds to avoid covenant breach
By Susanna Moon
Chicago, Feb. 20 - Phoenix Cos., Inc. said it received consents for about 72% of its 7.45% quarterly interest bonds due 2032 by the end of the solicitation at 5 p.m. ET on Feb. 20.
The consents received were enough to approve the amendments and waiver that allows Phoenix to extend to March 16, 2015 the deadline for all SEC reports required to be delivered to the bond trustee prior to that date, according to a company press release.
The consent solicitation began on Jan. 22, and the company needed consents from holders of at least a majority of the notes, as previously announced.
Phoenix previously said it expected to file its 2012 10-K report by March 31 and become a timely SEC filer with the filing of its second-quarter 2014 10-Q report.
The extended deadline provides Phoenix with more flexibility to deliver required SEC reports to the bond trustee, the company noted.
As previously reported, Phoenix is restating its financial statements for prior periods and, as a result, delayed filing its 2012 third-quarter 10-Q report and its 2013 first-, second- and third-quarter 10-Q reports with the SEC. The company also announced its inability to file the 2013 10-K report and one or more of the 2014 10-Q reports on a timely basis.
Because of the delays, the trustee for the securities sent a notice of default initiating the 60-day cure period under the indenture. The company sought to remedy this covenant violation through the amendment.
The consent fee is $0.0625 per $25 principal amount of bonds.
Holders must be of record as of 5 p.m. ET on Jan. 22.
Hartford-based Phoenix is a boutique life insurance and annuity company.
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