Swiss Insured Brazil Power starts consent solicitation for 9.85% notes

Chicago, June 25 – Swiss Insured Brazil Power Finance Sarl started a solicitation of consents to amend its 9.85% senior secured notes due 2032 (ISINs: L8915MAA3, 870880AA9) guaranteed by Celse – Centrais Eletricas de Sergipe SA to make space for a working capital facility in the amount of $175 million, according to a press release.

Celse said it needs the working facility to purchase liquefied natural gas due an extreme lack of rainfall, which has resulted in unanticipated and persistent dispatch of Celse’s combined cycle power plant.

The company needs to amend the terms and conditions to modify the definitions of “permitted indebtedness” and “permitted liens,” to amend the accounts agreement to allow Celse to open a segregated escrow account where variable revenues will be transferred and to release the security over the variable revenues received by Celse and make any other modifications necessary so that Celse can incur the working capital facility.

A consent payment will be paid to consenting noteholders of R$2.50 per R$1,000 note.

Goldman Sachs & Co. LLC is the solicitation agent (GS-LM-NYC@gs.com, 800 828-3182, 212 357-1452).

D.F. King & Co., Inc is the information and tender agent for the offer (866 751-6313, 212 269-5550, celse@dfking.com).

Swiss Insured Brazil Power is a Luxemburg special purpose vehicle issuing debt for Celse, a Brazilian company engaging in power generation from natural gas thermal plants.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.