Italy’s Intercos solicits consents to cut coupon, extend 3 7/8% notes

By Susanna Moon

Chicago, Feb. 9 – Intercos SpA is soliciting consents to amend its €120 million of 3 7/8% senior secured notes due March 28, 2022 and to extend the term by one year to March 28, 2023.

Intercos also is asking to cut the coupon to 3Ό% and to push out the make-whole call timeline, according to a company notice.

Specifically, the notes would be amended so that the notes are callable at a make-whole amount until March 28, 2020, then at 101 until March 27, 2021 and at par after that.

The notes are currently callable at a make-whole premium until March 28, 2018, then at 101 until March 27, 2019, at 100.5 until March 27, 2020 and at par after that.

The issuer also is proposing to amend the terms of permitted debt and security interest under the notes as well as provisions of the inter-creditor agreement and some related provisions of the share pledges.

The consent fee will be 0.5% of par.

The voting deadline is 4:45 a.m. ET on Feb. 24.

The noteholder meeting will be held at 4:45 a.m. ET on Feb. 28 in London.

The quorum required for the meeting is one or more holders representing more than one half of the outstanding notes. To pass, the extraordinary resolution requires a majority of the greater of (a) one or more holders representing at least one half of the outstanding notes and (b) one or more holders representing at least two-thirds of the outstanding notes represented at the meeting.

Lucid Issuer Services Ltd. is the information and tabulation agent.

The Law Debenture Trust Corp. plc is the trustee.

Concurrently, the issuer said it is discussing amending its loan terms with Banca IMI SpA as security agent, Unicredit SpA, ICBC (Europe) SA - Milan Branch and Banca Nazionale del Lavoro SpA to

• Increase the term loan facility to €60 million;

• Decrease the revolving facility by €10 million to €20 million;

• Change the pricing of the facilities;

• Extend the maturity date of the term loan by one year; and

• Decrease by one year the maturity of the revolving facility.

The notes were issued March 27, 2015.

Intercos is an Agrate Brianza, Italy-based company that manufactures and sells cosmetic products in the Americas, Europe, the Middle East, Africa, and Asia.

© 2015 Prospect News.
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