Trilogy International solicits consent to amend 8 7/8% note indenture

By Taylor Fox

New York, Oct. 8 – Trilogy International Partners Inc.’s subsidiaries Trilogy International Partners LLC and Trilogy International Finance Inc., co-issuers of 8 7/8% senior secured notes due 2022, are soliciting debtholder consent to the issuance of $50 million senior secured notes by Trilogy International South Pacific LLC, according to a 6-K filing with the Securities and Exchange Commission.

The consents being solicited would also authorize amendments to the indenture governing the existing notes to permit Trilogy International’s operating subsidiary in Bolivia, Nuevatel, to be sold for non-cash consideration, subject to certain terms and conditions.

Holders of greater than 75% in principal amount of the outstanding existing notes intend to provide their consents in response to the solicitation that commenced Thursday, according to the filing.

The note purchasers are expected to include beneficial owners of the existing notes.

Trilogy International chairman John Stanton and board director Terry Gillespie have also indicated that they intend to purchase a portion of the notes.

Any closing and funding of the notes would be subject to the successful completion of the consent solicitation, Trilogy approval and other customary conditions.

The notes would be issued with an aggregate face amount of up to $50 million.

The notes would bear interest at 10% per annum and mature on May 1, 2022.

The proceeds of the notes would be used to lend funds to Trilogy LLC, for the payment of interest on the existing notes and would also be used to pay interest on the notes themselves.

Holders of the existing notes who timely deliver valid consents and do not validly revoke such consents will receive a cash payment of $5 per $1,000 of the existing notes, subject to certain conditions.

The consent solicitation will terminate on Oct. 20.

The Bellevue, Wash.-based wireless telecommunications company operates in Latin America, the Caribbean and New Zealand.

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