Nexeo begins consent solicitation to amend 10 1/8% notes due 2026

By Taylor Fox

New York, Jan. 14 – Nexeo Plastics Holdings, Inc. commenced a consent solicitation from holders of its 10 1/8% senior secured notes due 2026 (Cusip: 64051NAA1 and U6404NAA3) to amend the indenture governing the notes, according to a news release.

Nexeo is seeking consents from holders representing at least a majority of the notes to modify the definitions of permitted debt and permitted liens in the indenture in order to increase the amount of additional notes or other secured indebtedness that the company is permitted to incur by $75 million in order to fund the acquisition of one or more permitted businesses on or prior to June 30.

Nexeo will pay $5 per $1,000 of notes to holders who validly deliver consents by the expiration time.

The consent solicitation is subject to conditions, including, the receipt of the necessary consents by the expiration time and the consummation of an offering of additional notes or other debt financing totaling more than $25 million.

The supplemental indenture will not become operative until all conditions to the consent solicitation have been satisfied or waived, including the consummation of the debt financing, and the consent fee has been paid.

Consents may be revoked at any time prior to the earlier to occur of the effective time and the expiration time, but not thereafter.

The consent solicitation will expire at 5 p.m. ET on Jan. 21.

Global Bondholder Services Corp. (212 430-3774, 866 470-3700; contact@gbsc-usa.com) is the information and tabulation, and Goldman Sachs & Co. LLC (212 902-5962, 800 828-3182; gs-lm-nyc@gs.com) is the solicitation agent.

Nexeo is a Houston-based distributor of chemicals and plastics and provider of environmental services.

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