Geo Energy aims to call S$100 million 7% notes due 2018, seeks consents

By Susanna Moon

Chicago, May 22 – Geo Energy Resources Ltd. said it seeking consents to amend its S$100 million of 7% senior notes due Jan. 18, 2018 and has set a meeting for June 14 in Singapore.

Specifically, Geo is asking for waivers to financial covenants in order to refinance the notes before maturity and to amend the notes to add a call option, according to a company announcement.

The company is offering a one-time fee of 0.5% for noteholders who send voting instructions in favor of the extraordinary resolution at the meeting before the consent fee deadline of 5 p.m. on June 5.

“Due to the turnaround in Geo Energy’s profitability, our balance sheet has materially strengthened even as we explored options to optimize our capital structure,” Tung Kum Hon, chief executive officer of Geo Energy, said in the company press release.

The notes are trading at a discount to par, the release noted.

J.P. Morgan (SEA) Ltd. is the solicitation agent.

Deutsche Bank AG, Singapore Branch is the principal paying agent.

The company is a coal mining company based in Singapore.

© 2015 Prospect News.
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