Al Candelaria, Credit Suisse eye tender, consent bid for 7½% notes

By Wendy Van Sickle

Columbus, Ohio, April 26 – Al Candelaria (Spain), SA as issuer and Credit Suisse Securities (USA) LLC as purchaser announced a cash tender offer for up to $350 million of the issuer’s 7½% senior notes due Dec. 15, 2028 (Cusips: 001355AA4, E0R75QAA6) and a concurrent solicitation of consents for some proposed amendments to the indenture.

The total consideration for notes accepted for purchase under the tender offer will be $1,155 per $1,000 principal amount, which amount includes an early tender payment of $50 that will be paid only to holders who tender by 5 p.m. ET on May 7. The total consideration also includes the consent payment of $2.50 per $1,000 principal amount.

Holders will also receive accrued interest.

The consent deadline is the same as the early deadline.

The tender offer will expire at 11:59 p.m. ET on May 21.

Under the consent solicitation, the purchaser is seeking to effect amendments to grant a security interest in a debt service reserve account in favor of the holders of new notes under a potential offering and the holders of any permitted debt incurred in the future and to clarify certain mechanics relating to the funding of the debt service reserve.

Credit Suisse plans to exchange notes purchased under the tender for new notes, and priority under the new notes offering may be given to investors who participate in the tender offer.

Holders may give their consents without participating in the tender offer. Holders who participate in the tender offer will be deemed to have delivered their consents.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. will serve as the dealer managers and solicitation agents for the tender offer and the consent solicitation.

D.F. King & Co., Inc. (212 269-5550, 800 967-5019 or aic@dfking.com) is the information and tender agent for the tender offer and consent solicitation.

Based in Madrid, the issuer is a Spanish holding company that invests in shares of Oleoducto Central SA, a Colombian company that owns and operates the Ocensa Pipeline.

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