Peru’s Orazul Energy extends full payment in Dutch auction for notes

Chicago, July 12 – Orazul Energy Peru SA announced an extension of the early tender payment in its modified Dutch auction tender offer for up to $150.4 million of its $550 million outstanding 5 5/8% senior notes due 2027 (Cusips: 68559BAA5, P7372BAA1), according to a press release.

The early tender time was 5 p.m. ET on July 9.

However, now the early tender payment will be paid through the expiration time of 11:59 p.m. ET on July 26. The expiration time is the withdrawal deadline.

The acceptable bid price range will be between $1,000 and $1,020 per $1,000 note, inclusive of an early tender premium of $50 per note.

The aggregate purchase price does not include interest.

Tendering noteholders should specify a bid price in the acceptable bid range. Noteholders who do not submit a bid price will be deemed to have specified $1,000 per note.

The clearing price that will be paid will be determined on the expiration date by determining the lowest bid price that will result in an aggregate purchase price equal to the maximum tender amount.

Tenders may be subject to proration.

In the original offer document, Orazul announced that any net cash proceeds not used in the tender offer, because tenders received were for less than the maximum amount, may be used for general corporate purposes including distributions to its shareholders. The company does intend to distribute to shareholders any remaining net cash proceeds, which could result in a ratings decline of the notes or a lower market price for the notes.

The tender offer constitutes an asset sale offer pursuant to the requirements of the indenture, in connection with Orazul's sale in August 2020 of its indirect ownership in the transmission business companies, Etenorte SRL and Eteselva SRL.

Settlement is expected for July 27.

Credit Suisse Securities (USA) LLC (800 820-1653, 212 538-2147) and Santander Investment Securities Inc. (855 404-3636, 212 940-1442) are dealer managers for the tender offer.

D.F. King & Co., Inc. (866 370-1749, 212 269-5550) is the information and tender agent for the offer.

Formerly Orazul Energy Egenor S. en C. por A, Orazul Energy is a Peru-based power generation and distribution company.

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