Brazil’s OAS solicits consents from holders of 8¼% notes due 2019

By Angela McDaniels

Tacoma, Wash., Oct. 6 – OAS SA subsidiary OAS Investments GmbH began a consent solicitation for its $875 million of outstanding 8¼% senior notes due 2019, according to a company news release.

The issuer is seeking consents to proposed amendments that would conform some provisions of the indenture governing the notes to the corresponding provisions in the indenture governing OAS Finance Ltd.’s $400 million of 8% senior notes due 2021.

If adopted, the proposed amendments will result in a covenant package that provides more operating and investment flexibility and is less restrictive than the current covenant package for the 8¼% notes, the company said.

Consents are needed from the holders of a majority of the outstanding principal amount of notes, excluding any notes held by the issuer or the company, in order to make the amendments.

The company is offering a consent fee of $5 per $1,000 principal amount of notes.

The consent solicitation will expire at 5 p.m. ET on Oct. 15.

Noteholders must be of record as of 5 p.m. ET on Oct. 5 in order to participate.

The solicitation agents are HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM) and Santander Investment Securities Inc. (212 940‑1442). The information agent is D.F. King & Co., Inc. (212 269-5550, 800 870-0126 or OAS@dfking.com).

OAS is a Sao Paulo-based construction company.

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