OAS and noteholders trade restructuring proposals; no deal reached

By Caroline Salls

Pittsburgh, Sept. 15 – OAS SA said no agreement had been reached with noteholders as of Tuesday on the terms of a restructuring transaction, although the parties have continued to participate in talks.

The company said $1,775,000,000 in principal amount of notes was outstanding as of Tuesday.

OAS said its representatives met with noteholder representatives on Sept. 1 through Sept. 3 to discuss possible terms for a potential financial restructuring. In addition, at the noteholders’ request, some of the company and noteholder representatives met with representatives of Brookfield Asset Management, Inc. Sept. 3 regarding the sale process for shares of Investimentos e Participacoes em Infraestrutura SA (Invepar) owned by OAS.

During the meetings with Brookfield, the company and noteholder representatives asked Brookfield to make an offer to acquire the Invepar shares, but Brookfield declined to do so, the release said.

On Sept. 1, the company representatives provided to the noteholder representatives a second written restructuring term sheet. OAS submitted a third written restructuring term sheet to the noteholders on Sept. 14. Both of those term sheets were also supported by some company shareholders.

On Sept. 10, the noteholder representatives submitted a non-binding partial written restructuring term sheet.

Additionally, company representatives disclosed on Sept. 1 that a data room containing documents related to the sale process for the Invepar shares is open to potential buyers and that several potential buyers have been in contact with the company representatives.

The company also disclosed that its representatives have been in discussions with Brazilian authorities regarding the “Lavo Jato” investigation in Brazil but were unable to give the noteholder representatives any additional information regarding those discussions.

OAS is a Sao Paulo-based construction company.

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