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Cosan holders OK one-time covenant waiver under 5%, 9½% notes
By Toni Weeks
San Luis Obispo, Calif., June 19 – Cosan Luxembourg SA said it received enough consents to permit a one-time waiver of some restrictive covenants contained in the indentures governing its $500 million of 5% senior notes due 2023 and its R$850 million of 9½% senior notes due 2018. The consent solicitation began June 4 and expired at 5 p.m. ET on June 18.
Both sets of notes are guaranteed by Cosan SA Industria e Comercio. The indentures are dated March 14, 2013 with Deutsche Bank Trust Co. Americas as trustee.
The waiver allows Cosan to distribute to shareholders all of its equity interests in Novo Rumo Logistica SA, which in turn owns 75% of Rumo Logistica Operadora Multimodal SA, or any other Cosan logistics entity as well as all of its equity interests in Radar Propriedades Agricolas SA.
Holders who consented to the proposed transaction also waived any covenants that would prevent any default and/or event of default that would arise from that transaction.
Holders of record as of 5 p.m. ET on June 3 were eligible to participate.
Cosan had offered to pay consenting holders a consent fee of $5.00 per $1,000 principal amount of dollar-denominated notes or R$5.00 per R$1,000 principal amount of real-denominated notes.
Banco Bradesco BBI SA, BTG Pactual US Capital LLC, Itau BBA USA Securities, Inc., Merrill Lynch Pierce Fenner & Smith Inc. (888 292-0070 or 646 855-8988) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) were the solicitation agents. D.F. King & Co., Inc. (212 269-5550 or 800 829-6551) was the information, tabulation and paying agent.
Cosan is an ethanol and sugar company based in Sao Paulo.
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