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PetroLogistics starts consent solicitation for 6¼% notes due 2020
By Jennifer Chiou
New York, June 24 – PetroLogistics LP and PetroLogistics Finance Corp. announced a consent solicitation for their 6¼% senior notes due 2020 at the request of Flint Hills Resources, LLC, a subsidiary of Koch Industries, Inc.
According to a press release, the solicitation is in connection with Flint Hills’ acquisition of PetroLogistics, which was announced on May 27.
The companies are soliciting consents to approve amendments to the indenture to replace the requirement that PetroLogistics file reports with the Securities and Exchange Commission with a requirement that it provide holders with a specified set of information that is more typical of debt securities issued in a Rule 144A-for-life transaction.
The release noted that the amendments would also remove the prohibition on the consolidation or merger of PetroLogistics Finance with or into an entity that is not a corporation.
Flint Hills will make a cash payment of $5.00 per $1,000 aggregate principal amount of notes for those who deliver consents, with 25% of the consent payment to be settled promptly and the remaining 75% to be paid following the close of the merger.
The solicitation will expire at 5 p.m. ET on July 2.
The merger is expected to be completed by Nov. 27.
In connection with the merger, Flint Hills will also provide PetroLogistics with a new unsecured pari passu revolving credit facility.
Holders of record as of June 23 may participate in the solicitation.
D.F. King & Co., Inc. is the information and tabulation agent (800 431-9633). The solicitation agent is Goldman, Sachs & Co. (212 902-6941 or 800 828-3182).
PetroLogistics is a Houston-based producer of propylene.
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