InterOil Exploration & Production bondholders OK amending 15% bonds

By Toni Weeks

San Luis Obispo, Calif., Feb. 28 - InterOil Exploration & Production ASA obtained 84.5% of the votes at a Feb. 28 bondholders meeting in Oslo, enough to amend its 15% senior callable bonds due 2014, according to a notice from trustee Norsk Tillitsmann ASA.

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

The adopted proposal will amend the bonds to

• 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.

The holders of at least half of the bonds had to be represented at the meeting in order to form a quorum. The holders of at least half of the bonds represented at the meeting needed to 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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