InterOil Exploration & Production begins consent bid for 15% bonds

By Angela McDaniels

Tacoma, Wash., Feb. 13 - InterOil Exploration & Production ASA began a consent solicitation for its 15% senior callable bonds due 2014, according to a notice from trustee Norsk Tillitsmann ASA.

InterOil has begun a process in Colombia to obtain additional funding for InterOil Colombia Exploration & Production Inc. Under the current terms of the bond agreement, InterOil Colombia is allowed to have $20 million of debt, and no more than $10 million of that amount may be secured.

The company is asking noteholders to approve the following amendments:

• Change the definition of "preferred senior debt" to allow $20 million of secured debt in Colombia;

• Change the definition of "preferred senior debt increase" to an increase above $20 million; and

• Change clause 13.7 (b) (iv) to allow $20 million of total debt in Colombia.

Noteholders will vote on the proposal at a meeting at 7 a.m. ET on Feb. 28 in Oslo.

The holders of at least half of the bonds must be represented at the meeting in order to form a quorum. The holders of at least half of the bonds represented at the meeting must vote in favor of the proposal in order for it to pass.

InterOil is an Oslo-based exploration and production company.

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