Oro Negro 7˝% bondholders asked to vote on liquidity bond issuance

By Caroline Salls

Pittsburgh, Dec. 5 – An informal group of holders of Oro Negro Pte. Ltd.’s 7˝% senior secured bond issue 2014/2019 is asking bondholders to vote on a resolution that would allow the company to issue up to $75 million in new bonds for contingency funding, according to a notice released Tuesday by bond trustee Nordic Trustee AS.

The bonds are expected to be issued in an initial tranche of $25 million, which may be increased by way of tap issues.

The coupon on the new bonds will be 12%, payable in cash or in liquidity bonds.

The new bonds will mature 60 days before the maturity date of the existing bonds.

The minimum subscription amount on the new bonds will be $200,000.

In addition, in order to give bondholders access to advice and assistance in connection with Oro Negro’s ongoing negotiations and recent developments, the trustee said the company intends to pay the fees and expenses of bondholder advisers.

The bondholders also asked the trustee to help them recover their costs and expenses in connection with resolving events of default under the bond agreements. Oro Negro is also prepared to reimburse the trustee’s costs for this assistance on terms and conditions to be agreed.

Fees owed to adviser AMA Capital Partners will include a $125,000 monthly fee and an up to $5 million restructuring fee, fees owed to bondholder group legal adviser Paul, Weiss, Rifkind, Wharton & Garrison LLP will include standard hourly rates ranging from $250 per hour to $1,470 per hour and reimbursement of expenses and disbursements, and the fee owed to a technical consultant to be hired by Oro Negro will be $1,000 per day plus reimbursement of fees and expenses.

AMA will also charge up to $25,000 for reimbursement of expenses and disbursements.

The bondholder voting period will expire five days after Dec. 5.

Oro Negro is an oil and gas services company based in Alvaro Obregon, Mexico.

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