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Renewable Energy gets consent to kill REC unit under 6.5% convertibles
By Susanna Moon
Chicago, July 16 - Renewable Energy Corp. ASA said bondholders approved lifting subsidiary REC Wafer Norway AS from the definition of "group" under its €320 million of 6.5% subordinated unsecured convertible bonds due 2014.
Holders approved the change to the bonds at a meeting held on July 16, according to a company press release.
The company said on June 22 that holders agreed to terminate REC Wafer as a guarantor of three series of its notes at a meeting held that day.
As previously noted, consents were needed under the company's 11% bonds due 2014, floating-rate bonds due 2016 and 9¾% bonds due 2018 in order to shut down the subsidiary's operations. Because REC Wafer is a guarantor of the notes, the consent of holders was needed to close the company's operations.
Consent bid fails
Renewable Energy said on July 3 that it failed to secure the needed consents to amend its outstanding 6.5% convertibles. The bondholders meeting was held on July 3.
Under the proposal, the company sought consents to extend the maturity to June 4, 2017, change the conversion price to NOK 2.7000 per REC share and revise the denomination of each bond to €1 from €50,000 to facilitate the partial redemption of the bonds, among other things.
The holders were asked to approve amending the bonds as part of a wider refinancing at a meeting in Oslo on July 3, as previously reported.
The refinancing strategy was aimed at securing the company's long-term industrial position and improving its capital and liquidity position. Each component of the refinancing was conditioned on the other components being implemented.
Renewable Energy is a Sandvika, Norway-based company active in the solar energy sector.
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