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Petrominerales bondholders agree to vote for put option extension
By Angela McDaniels
Tacoma, Wash., June 25 - Petrominerales Ltd. said the holders of more than two-thirds of its 2.625% senior convertible bonds due 2016 agreed to vote in favor of proposed amendments to the bonds at an upcoming meeting, according to a company news release.
As a result, the company expects the proposed changes will be passed, according to a company news release.
As previously reported, the bonds are putable at par on Aug. 25, 2013, and the company wants to extend this date by six months to Feb. 25, 2014 with corresponding postponements of the other dates relevant to the put option.
As part of this proposal, the share redemption election right will not apply to any put option following the postponement, according to a notice from bond trustee Norsk Tillitsmann ASA.
The company said it is seeking the postponement in order to complete the sale of its 5% equity ownership in the Oleoducto Central SA pipeline in Colombia.
If the proposal is approved, the company will agree to not divest the 5% stake unless the bondholders will receive mandatory prepayment of the outstanding bonds at par in cash. In addition, the company will not buy back any outstanding shares until the earlier of the mandatory redemption date and the Feb. 25, 2014 put option date.
The company is offering a 4.75% consent fee. All bondholders will receive the fee if the proposal is passed.
Bondholders will vote on the proposal at 7 a.m. ET on July 5 in Oslo.
At least half of the bonds must be represented at the meeting in order to have a quorum, and the holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal in order for it to pass.
Petrominerales is an oil and gas company based in Bogota, Colombia.
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