Eros STX announces consent solicitation for bonds due in October

Chicago, Aug. 10 – Eros STX Global Corp. started a consent solicitation for its £50 million 6½% bonds due Oct. 15 (ISIN: XS1112834608) on Tuesday, according to a notice.

Eros is asking bondholders to approve certain modifications to the trust deed and a waiver of a breach of certain provisions of the conditions of the trust deed and any related event of default or potential event of default for approval by extraordinary resolution at a bondholder meeting.

Specifically, the company seeks to extend the maturity date on the bonds, to enable the company to access additional liquidity to fund its operations and allow it to continue as a going concern while its film business recovers from the Covid-19 pandemic. The interest rate would also be increased to 8½% from 6½%.

The company is also asking for a waiver on the requirement to furnish its annual financial statements for the year ended March 31 by July 31 and its financial statements for the six months ended Sept. 30 by Nov. 30.

The early voting fee is £0.50 per £100 nominal amount of bonds. The early voting fee will be paid to bondholders who submit, and do not revoke, valid voting instructions before the early voting deadline if the extraordinary resolution passes and the proposal is implemented.

The early deadline for instructions is 11 a.m. ET on Aug. 24.

Voting instructions are due by 11 a.m. ET on Sept. 1. Voting instructions are irrevocable.

Arrangements to attend the meeting, for bondholders who do not wish to submit instructions, should be made by 11 a.m. ET on Sept. 1.

The meeting via teleconference will be held at 11:30 a.m. ET on Sept. 3.

Payment of the consent fee is expected to be paid within five business days following the date on which the proposal has been approved.

A quorum is two or more persons holding at least 75% of the nominal amount of the bonds. A majority of at least 75% of the votes cast is needed to pass the extraordinary resolution. If passed, the extraordinary resolution will be binding on all bondholders.

The solicitation agent is Peel Hunt LLP (+44 20 7418 8900, erosstx@peelhunt.com).

Lucid Issuer Services Ltd. is the tabulation agent (+44 20 7704 0880, eros@lucid-is.com).

Eros STX Global is a global entertainment company that acquires, co-produces and distributes films, digital content and music across multiple formats. It has headquarters in Douglas, Isle of Man, and Burbank, Calif.

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