Eros Media still negotiating repurchase amount in 8½% bond tender offer

By Mary-Katherine Stinson

Lexington, Ky., April 13 – Eros Media World plc, formerly Eros STX Global Corp., said it is delaying the announcement of the total repurchase amount and proration factor for the recently completed liability management exercise for its £50 million 8½% bonds due April 15, 2023 (ISIN: XS1112834608), citing ongoing negotiations with some creditors in connection with its Bank of India facility and some other debt facilities, according to a notice.

The outcome of the negotiations will be a factor in determining the aggregate amount to be repurchased.

As previously reported, the update was scheduled to be announced by April 12.

The company now expects to confirm the minimum repurchase total by April 28 and to make payment on the bonds accepted for repurchase by May 15.

In addition to the purchase price, the company will also pay accrued interest on all repurchased bonds up to but excluding May 15.

The company stated it is committed to maximizing the bonds it can repurchase due to the repurchase cap being exceeded and is taking additional time to ensure this outcome.

As previously reported, Eros offered to buy up to £25 million of the bonds for a £60 purchase price per £100 note. The company was to repurchase no less than £15 million of the bonds. However, the tendered amount of notes exceeded the £25 million repurchase cap.

The tender offer was accompanied by a consent solicitation, which was approved by the bondholders, to waive any existing defaults, to extend the maturity date, to up the coupon to 9% from 8½% and to introduce a new covenant regarding a debt limit. The company was further seeking to replace the trustee and a waiver for financial statements. The company completed the sale of STX Entertainment on April 25, but complex financial reporting and transition issues delayed financial audits.

The consent fee of £0.50 per £100 note, payable to any bondholder that either offered bonds for repurchase or voted in favor of the extraordinary resolution in the consent solicitation, is expected to be paid no later than April 28.

With the passage of the extraordinary resolution and the implementation of the proposals, M&G Trustee Co., Ltd. replaced U.S. Bank Trustees Ltd. as the trustee for the bonds, effective April 3.

Kroll Issuer Services Ltd. is the tender, tabulation and information agent (+44 20 7704 0880, eros@is.kroll.com, https://deals.is.kroll.com/eros).

Eros is an entertainment company based in Mumbai.

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