GPD extends solicitation of consents to amend basket under 2026 notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 13 – GPD Cos., Inc. extended its solicitation of consents from holders of its 10 1/8% senior secured notes due 2026 (Cusip: 64051NAA1, U6404NAA3) to some proposed amendments to the indenture governing the notes, according to a company news release.

The solicitation will now expire at 5 p.m. ET on Sept. 15, pushed out from 5 p.m. ET on Sept. 13.

At the initial expiration time, the company had received consents from holders representing 54.35% of the outstanding notes.

As announced on Sept. 7, the company is seeking consents from holders representing at least 66 2/3% in aggregate principal amount of the notes to modify the credit facility basket of the indenture in order to increase the size of the basket to $250 million from $175 million. The company is also proposing to add a borrowing base concept to the basket based on the its existing ABL credit agreement, which will permit the basket to grow as the borrowing base grows.

If the consent solicitation is successful, the company intends, subject to market and other conditions, to obtain an increase in commitments under its ABL credit agreement and to amend its existing intercreditor agreement in order to make corresponding changes to the proposed amendments.

The company is offering a consent fee of $2.50 per $1,000 principal amount of notes.

The consent fee will be paid on the settlement date, which is expected to occur as soon as practicable after the expiration time.

Consents may be revoked at any time prior to the earlier of the expiration time and the effective time of the supplemental indenture that will be executed if the necessary consents are received.

Goldman Sachs & Co. LLC (212 902-5962, 800 828-3182 or GS-LM-NYC@gs.com) is the solicitation agent.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-3700, contact@gbsc-usa.com) is the information and tabulation agent.

Based in The Woodlands, Tex., GPD is a holding company of plastics distributors.

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