GPD announces success of consent solicitation for 2026 notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 20 – GPD Cos., Inc. said it received the consents needed from holders of its 10 1/8% senior secured notes due 2026 (Cusip: 64051NAA1, U6404NAA3) to effect some proposed amendments to the indenture governing the notes, according to a company news release.

The consents were received under a solicitation that was announced on Sept. 7 and that expired at 5 p.m. ET on Sept. 20, having been extended from 5 p.m. ET on Sept. 15 and from 5 p.m. ET on Sept. 13.

The company needed consents from holders representing at least 66 2/3% in aggregate principal amount of the notes to modify the credit facility basket of the indenture in order to increase the size of the basket. The increase had been modified with the Sept. 15 amendment, and the company was ultimately asking to increase the basket to $275 million from $175 million. Previously, the company was asking to increase it to $250 million.

The company was also proposing to add a borrowing base concept to the basket based on its existing ABL credit agreement, which would permit the basket to grow as the borrowing base grows. However, this concept was dropped from the solicitation.

With the successful consent solicitation, the company intends, subject to market and other conditions, to obtain an increase in commitments under its ABL credit agreement and to amend its existing intercreditor agreement in order to make corresponding changes to the proposed amendments.

The company increased the consent fee to $5.00 per $1,000 notes from an the original $2.50 per $1,000 principal amount of notes.

Additionally, the company will pay participating holders a pro rata payment from a $2,475,000 amount, payable to holders for their consent based on the current $495 million outstanding principal amount of notes.

The consent fee will be paid on the settlement date, which is expected to be Sept. 21.

Goldman Sachs & Co. LLC (212 902-5962, 800 828-3182 or GS-LM-NYC@gs.com) is the solicitation agent.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-3700, contact@gbsc-usa.com) is the information and tabulation agent.

Based in The Woodlands, Tex., GPD is a holding company of plastics distributors.

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