Peru’s Inkia begins consent solicitation for 8 3/8% notes due 2021

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – Peru’s Inkia Energy Ltd. began a consent solicitation to amend the indenture governing its 8 3/8% senior notes due 2021, according to a press release.

The solicitation began Friday and will expire at 5 p.m. ET on Sept. 16.

The company is seeking approval to amend the indenture in connection with the spin-off by indirect parent Israel Corp. Ltd. of some of its businesses and associated companies to Kenon Holdings Ltd. and the sale by Inkia of all of its equity interests in Inkia Holdings Ltd., which indirectly holds all of the company’s equity interest in Edegel SAA, to Enersis SA and the repayment of certain related indebtedness.

According to the release, the Israel Corp. spin-off would constitute a change of control, and, following a change of control that results in a rating event, the company must make an offer to repurchase any or all of the notes at 101 plus accrued interest. Although the company does not expect the spin-off to cause a rating event, thus requiring it to offer to purchase the notes, it is seeking consents so that it will be able to consummate the spin-off without being required to make the offer.

The consent solicitation is subject to the company receiving consents representing at least a majority in principal amount of the outstanding notes.

If the company receives the requisite consents, Inkia will pay to each holder of record as of 5 p.m. ET on Sept. 4 who has delivered a valid consent prior to the deadline a $2.50 consent fee for each $1,000 principal amount of notes for which a valid consent was delivered.

Holders of notes who deliver consents but then revoke them or deliver consents after the expiration time will not receive the consent fee.

The company intends to promptly execute the supplement indenture to the notes once enough consents are received, the release said. The proposed amendments will not become operative until all conditions have been satisfied and the consent fee has been paid.

Inkia Energy is a power generation services company based in Lima.

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