India’s Eros Media delays payment of coupon, consent fee for 9% bonds

By Mary-Katherine Stinson

Lexington, Ky., May 3 – Eros Media World plc, formerly Eros STX Global Corp., has not made the coupon payment due April 17 for its £50 million 9% bonds due 2026 (ISIN: XS1112834608), which has also led to a delay in the payment of the consent fee, according to a notice.

The company stated it is holding the funds to make these payments within the Eros group, and its global treasury team is working to remit the funds internationally to satisfy the payments.

As previously reported, these bonds were the subject of a tender offer where 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 company was expected to confirm the minimum repurchase total by April 28, which was extended from April 12. On April 13, the company stated it was committed to maximizing the bonds it could repurchase due to the repurchase cap being exceeded and was engaged in ongoing negotiations with some creditors in connection with its Bank of India facility and some other debt facilities.

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.

Consents were also received to replace the trustee and provide 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, was expected to be paid no later than April 28.

Eros was expected to make payments plus accrued interest for the repurchased bonds by May 15.

Eros is an entertainment company based in Mumbai.

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