Golden Energy to swap $346 million notes due 2026 for notes due 2027

By Wendy Van Sickle

Columbus, Ohio, Nov. 21 – Golden Energy and Resources Ltd. received and accepted tenders to exchange $346,308,000 principal amount of the company’s outstanding 8˝% senior secured notes due 2026 (ISIN: XS2342227597) by the deadline of its offer to trade the notes for 8˝% senior secured notes due 2027 (ISIN: XS2551811651), according to a notice.

The tenders received represented 92.35% of the $357 million principal amount of the notes.

The company offered to trade the notes for a like principal amount of new notes with accrued interest on the existing notes to be paid in cash. Therefore, $346,308,000 of the new 2027 notes will be issued.

The purpose of the exchange offer was to loosen certain covenants currently in the indenture governing the existing notes.

These relaxations include changes in the financial ratios in the debt covenant and other amendments to permit the issuer to restructure and/or exiting all or substantially all of its energy coal business, which is in line with the issuer’s plan to reduce its exposure to energy coal.

The new notes will be unconditionally and irrevocably guaranteed by the subsidiary guarantor and secured by collateral.

There was a minimum condition of noteholders exchanging at least 75% of the notes.

The offer started Nov. 1 and expired at 11 a.m. ET on Nov. 21.

Settlement is planned for Nov. 28.

Following settlement, $28,692,000 of the existing notes will remain outstanding.

Mandiri Securities Pte. Ltd. is the dealer manager.

Morrow Sodali Ltd. is the information and exchange agent (https://projects.morrowsodali.com/gar, gear@investor.morrowsodali.com).

Golden Energy is a Singapore-based coal miner operating in Indonesia.

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