FS Agrisolutions unit seeks consents from holders of 10% bonds due 2025

By Wendy Van Sickle

Columbus, Ohio, June 24 – FS Agrisolutions Industria de Biocombustiveis subsidiary FS Luxembourg Sarl is asking holders of its $654,176,000 of 10% bonds due Dec. 15, 2025 to consent to some amendments to the note indenture, according to a news release.

FS Agrisolutions guarantees the notes.

The proposed amendments seek to allow one or more affiliates of FS Agrisolutions to provide a guarantee on the notes and to become a guarantor of the issuer's obligations under the indenture; amend the definitions of “parent entity expenses" and “capitalized leased obligation;” make clarifying changes to the definition of “permitted investments" and to the exception to the limitation on indebtedness covenant; and amend the clause with respect to restricted payments.

The consent solicitation will expire at 5 p.m. ET on June 30. Only holders of the notes as of 5 p.m. ET on June 23 may deliver consents.

If the solicitation is successful and the amendments are adopted, holders who delivered consents will receive a payment of $10 per $1,000 of notes for which consents were delivered prior to the offer expiry.

Holders of a majority in principal amount of the notes must deliver consents in order for the amendments to gain approval.

Morgan Stanley & Co. LLC is acting as solicitation agent.

D.F. King & Co., Inc. (800 714-3310, 212 269-5550 or fsluxembourg@dfking.com) is the information agent, tabulation agent and paying agent.

FS Agrisolutions is a corn-based ethanol producer based in Lucos do Rio Verde, Brazil.

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