Platinum Energy gets consents needed to sell more 14¼% notes

By Angela McDaniels

Tacoma, Wash., Sept. 23 - Platinum Energy Solutions, Inc. received enough consents to amend the indenture governing its $115 million of 14¼% senior secured notes due 2015 and the related registration rights agreement, according to a company news release.

The consent solicitation began on Sept. 19 and was scheduled to expire at 5 p.m. ET on Sept. 23.

Consents were needed from the holders of a majority of the notes not owned by the company or its affiliates. This condition was met as of 6 p.m. ET on Sept. 21, and supplemental indentures implementing the amendments have been executed.

The indenture was amended to

• Allow the company to issue up to $50 million of additional notes;

• Increase the permitted debt basket to $50 million from $35 million to allow for the issuance of the additional notes;

• Eliminate a proviso that the debt created by the additional notes must be used by the company to acquire equipment;

• Increase the capital expenditures limit in the indenture to $30 million from $10 million effective in the fiscal year beginning in 2012; and

• Increase to $160 million from $113 million the exclusion for anticipated expenditures for equipment.

The registration rights agreement was amended to extend the effectiveness date to Jan. 31 from Nov. 28 in order to allow additional time to cause the company's exchange offer registration statement currently on file with the SEC to become effective.

The consent fee is $10.00 per $1,000 principal amount of notes. It will be paid after the solicitation period expires.

The notes were issued in March via Rule 144A without registration rights. They priced at 97.764 to yield 15.17%.

The information agent is Global Bondholder Services Corp. (866 924-2200 or 212 430-3774).

Platinum is an oilfield services provider based in Houston.

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