Alliance Oil expects to redeem remaining 7.25% convertibles on Dec. 23

By Angela McDaniels

Tacoma, Wash., Dec. 18 - Alliance Oil Co. Ltd. expects to exercise the call option for its 7.25% convertible bonds due 2014 on Dec. 20 and to redeem the convertibles on Dec. 23, according to a company news release.

The company also announced that all of the financing and transactions conditions have been satisfied for its tender offer for the convertibles.

As previously reported, holders tendered $253.6 million of the $265 million convertibles in the offer, which ended at 11 a.m. ET on Nov. 22. Settlement will occur on Dec. 19.

The purchase price will be 105% of par for notes tendered by the early tender deadline, 11 a.m. ET on Nov. 13, and par for notes tendered after the early tender date.

The company will also pay accrued interest.

The offer began on Nov. 4 in connection with the company's merger with Lambros Overseas SA and OJSC Alliance Group.

On Dec. 17, Alliance Oil and Alford Financial Ltd. were amalgamated into a new company also named Alliance Oil, and the new company assumed all rights and obligations under the bonds.

In connection with the tender offer, the company solicited consents to modify the terms and conditions of the convertibles to give it the option to redeem all, but not just a portion, of any convertibles that remain outstanding after the completion of the tender offer at par plus accrued interest.

By tendering bonds in the offer, bondholders automatically arranged for a proxy to vote in favor of the proposed modification at the bondholder meeting held at 11 a.m. ET on Nov. 26 in London.

Holders had the option to vote in favor of the proposed modification without tendering their bonds. Holders who delivered a voting-only instruction in favor of the proposal by the early tender deadline will receive a 5% consent fee.

The dealer manager was BofA Merrill Lynch (contact John Cavanagh/Karl Bystedt Wikblom at 44 20 7995 3715/44 20 7996 0867 or john.m.cavanagh@baml.com/karl.bystedtwikblom@baml.com). The tender and tabulation agent was Bank of New York Mellon, London Branch (44 1202 689644 or debtrestructuring@bnymellon.com).

Alliance Oil is an oil company based in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.