Singapore’s Halcyon expects to get consents from 6˝% noteholders

By Marisa Wong

Madison, Wis., Dec. 30 – Halcyon Agri Corp. Ltd. said that as of 4 a.m. ET on Dec. 29, the early acceptance fee deadline, holders of S$103.5 million of its 6˝% series 001 notes due 2019 have delivered instructions to have their votes cast in favor of proposed amendments at an upcoming meeting.

As previously announced, the company is seeking approval from holders of the series 001 notes to amend the financial covenants, specifically those related to an interest coverage ratio, of the trust deed for the notes and to include an escrow arrangement.

The company began the consent solicitation to amend the series 001 notes on Dec. 18. The consent solicitation expires at 9 p.m. ET on Jan. 8.

A noteholders’ meeting will be held at 9 p.m. ET on Jan. 11 to consider the proposed amendments.

The meeting will require a quorum of two or more persons representing a majority of the outstanding principal amount of notes. If a quorum is not met within the first 15 minutes of the meeting time, the meeting will be adjourned.

The extraordinary resolution proposed at the meeting will need at least 75% of the votes to pass.

Based on the voting instructions received as of the early acceptance fee deadline, the company expects that the quorum will be met and that the extraordinary resolution will be passed.

The company is offering a consent fee. Those who already delivered their voting instructions by the early acceptance fee deadline will receive the early acceptance fee, and those who vote in favor of the extraordinary resolution at the meeting or deliver their voting instructions after the early deadline but before the expiration of the consent solicitation will receive a normal consent fee. The exact consent fees were not specified in the notice.

DBS Bank Ltd. is the solicitation agent.

The Singapore rubber company had issued S$125 million of the 6˝% notes under its S$300 million multicurrency debt issuance program established on April 25, 2014.

© 2015 Prospect News.
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