Canacol begins tender offer, seeks consents for 7¼% notes due 2025

By Marisa Wong

Los Angeles, Nov. 8 – Canacol Energy Ltd. announced that Credit Suisse Securities (USA) LLC has begun an offer to purchase for cash any and all of Canacaol’s $320 million outstanding 7¼% senior notes due 2025 (Cusip: 134808AC8, U13518AB8).

The purchaser is offering to purchase the notes at $1,015.85 per $1,000 principal amount.

The purchaser is also offering an early tender payment of $50 per $1,000 of notes tendered by the early deadline at 5 p.m. ET on Nov. 22, for a total consideration of $1,065.85 per $1,000 of early tendered notes.

In addition, holders will receive accrued interest to but excluding the applicable settlement date.

Credit Suisse is also soliciting, on behalf of Canacol, consents to proposed amendments to the notes’ indenture dated May 3, 2018. The amendments would, among other things, eliminate substantially all restrictive covenants in the indenture and shorten the notice period applicable to optional redemptions to not less than three business days and not more than 60 days from not less than 10 and not more than 60 days.

Consents from holders of a majority of the outstanding principal amount of notes is required to authorize the proposed amendments.

Holders may not tender their notes without delivering consents and vice versa.

The tender offer and consent solicitation will expire at 11:59 p.m. ET on Dec. 7.

Tenders may be withdrawn prior to 5 p.m. ET on Nov. 22.

Settlement of early tenders is expected to be on Nov. 23, and final settlement is slated for Dec. 8.

Credit Suisse will exchange notes purchased in the tender offer for notes in a new offering by Canacol.

The tender offer is not conditioned on any minimum participation, including the minimum threshold necessary to complete the solicitation.

Canacol said it intends to send a notice of redemption for any outstanding notes following the early settlement date.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212-538-2147) are the dealer managers and solicitation agents.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers and 877 674-6273 for all others) is the information agent and tender agent.

Canacol is a Calgary, Alta.-based natural gas exploration and production company with operations focused on Colombia.

© 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.