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OSX 3 Leasing eyes $7 million of bonds, needs consents under 13% issue
By Susanna Moon
Chicago, Oct. 6 – OSX 3 Leasing BV has set a meeting on Oct. 20 in Oslo for holders of its 13% senior secured callable bond issue 2012/2015.
OSX 3 is asking holders to approve up to $7 million of new bonds, with proceeds to be used for meeting “running costs,” for repaying the $1.75 million bridge funding and for “maximizing recoveries under the bonds,” according to a notice by bond trustee Nordic Trustee ASA.
Bondholders may subscribe to the new loan for an amount equal to 1.3559% if $7 million is issued or 1.1622% if $6 million is issued.
The meeting has been called at the request of holders representing 1/10 of the outstanding bonds.
The company has been in talks with an ad hoc committee of holders representing more than 66 2/3% of the notes.
As announced July 22, the company won unanimous approval to amend the notes related to the bridge financing and the applications of Brazilian charter agreement proceeds.
The trustee said $1.75 million of bridge financing was extended to OSX by members of a bondholder committee to meet short-term liquidity requirements. Interest on the financing will accrue at a rate of 35%, payable in kind.
Nordic Trustee had received the Brazilian real equivalent of $6 million of proceeds in connection with a charter agreement with proceeds applied toward required payments.
The trustee said additional funding was needed in the next few months in order to make required payments and, in part, to repay the bridge financing.
The additional funding was to be structured as a $10 million new bond loan to be issued by OSX or a third-party special purpose vehicle.
The new loan was expected to be available to all bondholders, subject to a minimum subscription amount. Interest had been set for 35%.
SX 3 Leasing is a subsidiary of OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.
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