Essential Power gets consents to amend 10 7/8% notes before deadline

By Marisa Wong

Madison, Wis., July 31 - Essential Power Holdings, LLC said it received tenders and consents from holders of $133.16 million principal amount of its 10 7/8% senior secured second-lien notes due 2016 as of 5 p.m. ET on July 31.

The amount of tendered notes represents 64.96% of the total outstanding principal amount, providing the necessary consents to execute a supplemental indenture amending the notes.

Essential Power began a tender offer on July 2 for the notes, which were co-issued by subsidiaries Essential Power, LLC and Essential Power Finance Corp. The company also solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and modify some of the events of default.

Holders who tender their notes and deliver their consents by 5 p.m. ET on Aug. 1, the consent deadline, will receive $1,126.25 per $1,000 principal amount of notes. The total payment includes a $50.00 premium.

The consent deadline was previously extended from July 16.

The company said before that it may choose to settle notes tendered by the early deadline on Aug. 8, but the tender offer is still set to end at 5 p.m. ET on Aug. 15.

Holders will receive accrued interest up to, but excluding, the settlement date.

Holders who tender their notes must also consent to the proposed amendments.

The offer is conditioned on the receipt of tenders and consents for a majority of the outstanding notes by the consent date, which has already been satisfied, and the completion of one or more debt financings.

The dealer manager and solicitation agent is Barclays Capital Inc. (800 438-3242 or 212 528-7581). The information agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers; others call 800 628-8532).

Essential Power Holdings was formerly known as North American Energy Alliance Holdings, LLC. The subsidiaries were formerly known as North American Energy Alliance, LLC and North American Energy Alliance Finance Corp., respectively. Essential Power Holdings is based in Iselin, N.J. Essential Power, LLC is a wholesale power generation and marketing company.

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