Golden State gets consent from 8.04% noteholders to release collateral

By Marisa Wong

Madison, Wis., Sept. 11 – Golden State Petroleum Transport Corp. said it received consents from holders of $124.6 million, or 98%, of its outstanding 8.04% first preferred mortgage notes due 2019 as of 5 p.m. ET on Sept. 9, the expiration of its consent solicitation.

Golden State solicited consents to amend the indenture governing the notes. The company needed consents from holders of a majority in principal amount of the outstanding notes. As a result, the company will enter into a supplemental indenture effecting the proposed changes.

The purpose of the consent solicitation was to approve the proposed sale of the m.t. Ulriken, a large crude carrier that serves as part of the collateral for the notes, and the release of the vessel from the notes indenture.

In addition, after the sale of the vessel, all outstanding notes will be redeemed mandatorily at par plus accrued interest to the redemption date.

Golden State said it will issue a notice of redemption to noteholders once the vessel is sold.

The consent solicitation began on Aug. 28.

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