Coro Energy seeks consents to restructure 5% secured notes

By Mary-Katherine Stinson

Lexington, Ky., March 3 – Coro Energy plc said that following the signing of non-binding heads of terms with Lombard Odier Asset Management (Europe) Ltd. and discussions with certain other noteholders, it is seeking consents to restructure its Luxembourg-listed €22.5 million 5% secured notes, according to a notice Thursday.

Two noteholder meetings will be held on March 25, the first at 5 a.m. ET for the tranche A notes and the second at 5:15 a.m. ET or after completion of the tranche A meeting, whichever is later, for the tranche B notes.

The company is seeking noteholder consent to extend the maturity of the notes by two years to April 12, 2024 and remove all further cash interest payments on the notes prior to the maturity date while increasing the coupon to 10%.

Noteholders will also be asked to approve, in the event of a sale of the company’s interest in the Duyung PSC, the use the cash net proceeds of such a sale to, first, pay the capital and rolled up interest on the notes and then distribute 20% of the remaining net proceeds to the noteholders. Any remaining proceeds of the sale would be retained and/or distributed to shareholders.

If the proposals are approved by the required majority of noteholders, any and all interest from April 12 at the revised coupon of 10% will be paid in cash on the maturity date.

However, noteholders may choose from July 12 onward to receive note interest payments from the immediately proceeding quarter in new ordinary shares of the company instead, subject to the company having the required share authorities in place to satisfy the election and provided that at least 50% of the noteholders decide to do so with respect to the relevant quarter.

Any new ordinary shares issued as a result of these elections will be issued at a price equal to the volume-weighted average price of the company’s shares for the 10 business days before the relevant interest conversion date.

As a result of the company issuing the proposals and subject to noteholder approval, the company has agreed to continue to pursue and support Conrad Asia Energy Ltd., operator of the Duyung PSC, in seeking the sale of the Duyung PSC.

The oil and gas company is based in London.

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