Chile's Inversiones Alsacia extends consent solicitation for 8% notes

By Jennifer Chiou

New York, Aug. 29 - Inversiones Alsacia SA extended the consent solicitation for its 8% senior secured notes due 2018 to 5 p.m. ET on Sept. 12 from Sept. 3.

As previously reported, the company is also soliciting consents from its counterparties to two foreign-currency hedge agreements relating to the notes.

Alsacia is seeking a waiver of any default, event of default, early amortization event and covenants relating to the failure to maintain a debt service coverage ratio of 1.1 times and the failure to fund the O&M account in the amounts required under the note indenture dated Feb. 18, 2011, as supplemented, according to a press release.

The consent payment will be $2.50 for each $1,000 principal amount of notes or in the value of the notes hedge agreements. Holders and notes hedge counterparties must be of record as of 5 p.m. ET on Aug. 19.

The proposed waivers require consents of holders and notes hedge counterparties holding more than 50% of the outstanding notes and notes hedge agreement value.

The solicitation was extended to give noteholders time to consider amendments made to the company's concession agreement with the Chilean Ministry of Transportation and Telecommunications.

The company said that as a result of the concession amendments, it will receive an increase in the payment per passenger of 22 Chilean pesos, a roughly 4% increase over current levels.

BofA Merrill Lynch is the solicitation agent. Global Bondholder Services Corp. (attn: corporate actions, at 866 470-4300 or 212 430-3774) is the information and tabulation agent.

Alsacia is a transportation company based in Santiago, Chile. It began soliciting consents on Aug. 20.

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