Brazil’s OAS obtains needed consents for 8¼% notes due 2019

By Jennifer Chiou

New York, Oct. 15 – OAS SA subsidiary OAS Investments GmbH announced the receipt of consents from holders of a majority of its $875 million of outstanding 8¼% senior notes due 2019.

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

According to a company news release, the company and the trustee have entered into a supplemental indenture.

As reported, the issuer was 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.

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 previously said.

Consents were 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 offered a consent fee of $5 per $1,000 principal amount of notes.

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

The solicitation agents were 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. It launched the solicitation on Oct. 6.

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