CMA CGM tenders, seeks consents for 5.562% asset-backed notes due 2021

By Susanna Moon

Chicago, May 19 – CMA CGM SA said it began a tender offer and consent solicitation for its $253.75 million 5.562% class A corporate asset-backed secured notes due 2021, of which $69,988,168.41 is outstanding.

The notes were issued by Vega ContainerVessel 2006-1 plc.

Holders who tender their notes and vote for the proposed measures by 5 p.m. ET on June 1, the early consent date, will receive the total amount of $1,060 per $1,000 principal amount of notes, according to a company notice.

Those who tender their notes and vote for the measures after the early consent deadline will receive $1,030 per $1,000 of notes.

The tender offer will end at 5 p.m. ET on June 17.

Holders also will receive accrued interest up to but excluding the settlement date, which will be June 3 for early tendered notes and June 19 for remaining tenders.

Holders are being asked to amend the terms

• So that the maximum amount of distributions that may be paid in 2015 for the 2014 financial year be increased to $80 million from $40 million;

• To provide that each vessel only be required to call once in every 90-day period at a port in any of Australia, France, Hong Kong, China or the United States;

• To give the issuer the right to purchase any of the class A notes; and

• To add a condition that gives the issuer the right to redeem all but not some of the class A notes at 103 within three business days of the new condition becoming effective.

A meeting will not be held to consider the proposals, the release noted.

The principal amount outstanding of the class A notes has amortized and are subject to a pool factor of 0.275815442.

Proposal background

In connection with a 2012 restructuring, CMA CGM said it agreed to limitations to the payment of dividends, management fees, shareholder loans, return of capital or any similar or equivalent distribution, including those that prevent CMA CGM from making any distribution of more than $40 million in 2015 for the 2014 financial year.

CMA CGM said the “restrictions are no longer relevant and are not commensurate with its current operating performance and improved financial situation since December 2012.”

CMA CGM said it contained its debt that resulted in a gearing ratio of 0.55 at year-end 2014, well below CMA's covenant level of 0.8.

The dealer manager is BNP Paribas, London Branch (+44 207 595 8668, 888 210-4358, 212 841-3059, liability.management@bnpparibas.com).

The tabulation agent is Lucid Issuer Services Ltd. (cmacgm@lucid-is.com, +44 20 7704 0880, fax +44 20 7067 9098, Yves Theis / Paul Kamminga).

CMA is a Marseille, France-based maritime shipping company.

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