Tervita gets OK to amend 7 5/8% notes to incur more second-lien debt

By Wendy Van Sickle

Columbus, Ohio, May 21 – Tervita Corp. said it received consents to amend its 7 5/8% senior secured notes due 2021 from holders of more than 50% of the notes, meaning that the consent bid was successful.

The consent solicitation opened on May 15 and was due to expire at 5 p.m. ET on May 21, although the company reported in a news release that the requisite number of consents had been received by noon ET on that date.

The cash consent payment will be $5 per $1,000 principal amount. Holders had to be of record as at 5 p.m. ET on May 14.

Tervita asked to amend provisions of the notes to allow the issuer to incur additional second-lien debt on a one-time basis to facilitate its acquisition of Newalta Corp. upon closing of the arrangement and retirement of Newalta debt under the plan of arrangement.

The closing of the arrangement was not conditioned on receipt of the required consents to the proposed amendments.

The amendments will not become operative unless the arrangement is completed and the consent payment is made, the release noted. The consent payment is expected to be made promptly after closing of the arrangement.

Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) is the solicitation agent. D.F. King & Co., Inc. (877 361-7965 or 212 269-5550) is the information and tabulation agent.

Tervita is a Calgary, Alta.-based environmental management company for the oil and gas industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.