Puma Energy seeks consents to amend 5% senior notes due 2026

By Marisa Wong

Los Angeles, May 25 – Puma Energy Holdings Pte. Ltd. announced a consent solicitation relating to the $750 million 5% senior notes due 2026 issued by Puma International Financing SA, according to a news release.

The issuer is seeking to amend the indenture governing the 2026 notes to facilitate a planned deleveraging transaction.

Puma Energy intends to use at least $410 million of proceeds from an infrastructure and storage transaction, together with additional funding from other available liquidity resources, to repay, repurchase, prepay or redeem in full Puma International’s earlier maturing $600 million 5 1/8% senior notes due 2024. The plan would be to complete the deleveraging transaction no later than Dec. 31.

To satisfy a pro rata repayment requirement, the proposed deleveraging transaction is also expected to result in a portion of the proceeds from the infrastructure and storage transaction being applied toward repayment, repurchase, prepayment or redemption of Puma International’s €200 million 2.65% amortizing senior notes due 2024.

As of May 25, the aggregate principal amount outstanding under the 2024 dollar notes is $530,972,000, while the aggregate principal amount outstanding under the 2024 euro notes is €50,000,000.06 but is expected to reduce to €33,333,333.40 on July 31 through the next scheduled amortization payment.

The company said it believes that the proposed deleveraging transactions would provide the best result for the group’s relevant stakeholders taken as a whole. If the proposed amendments under the consent solicitation are not approved, the company’s preference to deploy a meaningful portion of the proceeds from the infrastructure and storage transaction toward bond debt reduction may be challenging to achieve. The company explained that this is because the terms of the group’s outstanding bonds effectively require that application of proceeds of an asset sale toward the repayment, repurchase, prepayment or redemption of outstanding bonds occurs through an offer to repurchase extended to all such series of bonds on a pro rata basis.

Consent bid details

Adoption of the proposed amendments with respect to the 2026 notes requires the consents of holders of a majority in principal amount of the notes outstanding.

The issuer is offering a consent payment of $16 per $1,000 principal amount.

The consent solicitation will expire at 11 a.m. ET on June 9.

The operation date is expected to be on or about June 16.

The solicitation agents are J.P. Morgan Securities plc (em_europe_lm@jpmorgan.com) and Societe Generale (+33 1 42 13 32 40; liability.management@sgcib.com).

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933 203 609-4910; https://projects.morrowsodali.com/pumaenergy) is the information and tabulation agent.

Puma Energy is a Singapore-based multinational downstream oil company.

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