Geo Energy gets consents for 93.25% of S$100 million 7% notes due 2018

By Susanna Moon

Chicago, June 6 – Geo Energy Resources Ltd. said it had secured consents for S$93.25 million of its S$100 million of 7% senior notes due Jan. 18, 2018 as of the consent fee deadline of 5 a.m. ET on June 5.

As a result, Geo expects to meet quorum required for the meeting on June 14 in Singapore and that the amendments will be approved, according to a company update on Tuesday.

The company said on May 22 that it is seeking consents to amend the notes, specifically for waivers to financial covenants in order to refinance the notes before maturity and to amend the notes to add a call option.

The company is offering a one-time fee of 0.5% for noteholders who send voting instructions in favor of the extraordinary resolution at the meeting before the consent fee deadline of 5 a.m. ET on June 5.

The consent solicitation will continue until 10 p.m. ET on June 11.

“Due to the turnaround in Geo Energy’s profitability, our balance sheet has materially strengthened even as we explored options to optimize our capital structure,” Tung Kum Hon, chief executive officer of Geo Energy, said in the company’s previous press release.

The notes are trading at a discount to par, the previous release noted.

J.P. Morgan (SEA) Ltd. is the solicitation agent.

Deutsche Bank AG, Singapore Branch is the principal paying agent.

The company is a coal mining company based in Singapore.

© 2015 Prospect News.
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