Pearl Holding says 93.6% of noteholders have agreed to restructuring

By Sarah Lizee

Olympia, Wash., June 18 – Pearl Holding III Ltd. said that holders of about 93.6% of its $175 million 9˝% senior secured notes due 2022 have acceded to its previously announced restructuring support agreement prior to the consent fee cut-off time of 5 a.m. ET on June 16, according to a news release.

As previously reported, the company announced that it will not pay the coupon due on the notes this month and does not plan to make the payment during the grace period, either.

The company had previously announced that it entered into a restructuring support agreement with an ad hoc committee on May 26.

The company is planning to implement a restructuring in respect of the notes via a scheme of arrangement, aimed at strengthening the company’s financial stability and enhancing its ability to continue to serve its customer and creditors.

If the restructuring is successful, the notes will be canceled and claims against the company regarding the notes will be discharged.

In exchange, noteholders will receive a cash payment in an aggregate amount of $23.25 million, newly issued 9% senior secured notes due 2025 in an aggregate principal amount of $66.5 million to be issued by the company and newly issued perpetual notes in an aggregate principal amount of $83.5 million to be issued by Pearl II.

Interest on the new notes will start to accrue interest on July 1, even though the actual notes may be issued after that date.

The company said noteholders are still encouraged to accede to the support agreement, though they won’t be eligible for payment of the consent fee as the cut-off time has passed.

Morrow Sodali Ltd. is the information agent (pearl@investor.morrowsodali.com, https://bonds.morrowsodali.com/pearl).

Pearl Engineered Solutions provides high precision tools and complex injection molded components. Headquarters are in Hong Kong.

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