Suriname amends, extends consent solicitation for 2023, 2026 notes

By Wendy Van Sickle

Columbus, Ohio, April 6 – The Republic of Suriname announced it amended and extended the expiration date of each of its consent solicitations to amend its $125 million of 9 7/8% notes due Dec. 30, 2023 (Cusips: 86886PAB8, P68788AB7) and its $550 million of 9¼% notes due Oct. 26, 2026 (Cusips: 86886PAA0, P68788AA9).

The consent solicitations now expire at 5 p.m. ET on April 12, according to a press release. The consent solicitations were previously set to expire at 5 p.m. ET on April 8, having previously been pushed out from 5 p.m. ET on March 29.

The republic said the amendment follows constructive engagement between it and the advisers of the representative committee of holders of the notes.

Suriname said the amendment reflects those advisers’ input and that it expects the committee to publicly support the terms of the amended solicitation.

The extended solicitation, it said, will provide committee members and other bondholders additional time to deliver consents.

Amendments

The republic is amending the solicitation to modify timing of the termination trigger and reaffirm its commitment to reach an agreement with the IMF staff on the macro-fiscal framework and policy commitments underpinning an IMF-supported program for Suriname.

If this IMF condition has been satisfied by April 30, should holders of a majority of the total principal amount of each of the 2023 notes and 2026 notes outstanding provide written notice to the republic within seven calendar days after the satisfaction of the IMF condition or on or after the 35th day after the date of satisfaction of the IMF condition and prior to July 23 to the effect they believe that the republic has materially breached the pre-SLA commitments or has not been negotiating in good faith the terms of the debt restructuring:

• The deferral of interest on the 2026 notes originally due on Oct. 26, 2020 and the deferral of interest and principal payments on the 2026 notes originally due on Dec. 30, 2020 will terminate on the seventh calendar day after the receipt of the written notice;

• The deferral of interest on the 2026 notes originally due on April 26 will terminate on the later of May 26 and the seventh calendar day after receipt of such written notice;

• The deferral of the principal payment on the 2026 notes originally due on June 30 will terminate on the later of July 10 and the seventh calendar day after the receipt of the notice, with accrued interest for the applicable payment due on the relevant termination date; and

• The obligation of the republic to make payments under the dividend covenant and the remit covenant will apply from the seventh calendar day after the republic’s receipt of such written notice.

Details

Only holders of record as of 5 p.m. ET on March 16 will be entitled to vote.

The company will pay holders a consent fee equal to $0.50 for each $1,000 principal amount of notes for which consents are delivered and accepted.

The proposed amendments will become effective only if consents from holders of at least 75% of the outstanding principal amount of 2023 and 2026 notes have been delivered and accepted. A concurrently sought waiver will become effective only if consents from 50% of noteholders are delivered and accepted. In addition, the amendments to each series of notes will only become effective if the amendments proposed to the other series also become effective.

White & Case LLP and Lazard Freres are acting as the republic’s legal and financial advisers, respectively.

Morrow Sodali Ltd. (+44 20 8089 3287, 203 609-4910, +852 2158 8405; suriname@investor.morrowsodali.com; https://bonds.morrowsodali.com/surinameconsent) is the information and tabulation agent for the consent solicitation.

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