EM-focused Stoneway ups consent fee in bid to allow additional debt

By Susanna Moon

Chicago, Nov. 6 – Stoneway Capital Corp. said it increased the amount of the consent fee to be paid in the solicitation for its 10% senior secured notes due 2027 being held until 5 p.m. ET on Nov. 8.

The consent fee was raised to $25.00, from $15.00, for each $1,000 principal amount, according to a company notice on Monday.

As announced Oct. 31, Stoneway is soliciting consents in connection with the contract award by CompanŽiģa Administradora del Mercado Mayorista Eleģctrico SA, Cammesa, for 105 MW of electricity generation capacity for 15 years to the company’s affiliate Araucaria Generation SA.

The company said that consents are needed to allow the company to acquire Araucaria Generation SA for a “nominal” amount and to benefit from the contract.

Specifically, holders are being asked to waive some restrictions for incurring additional debt under the notes indenture in order to raise about $165 million to finance construction of the additional generation capacity required under the contract.

After closing the additional financing, the company will deposit proceeds into a newly created construction suspense account.

For each initial plant, the criterion for release of funds and transfer into the additional San Pedro construction accounts and additional IDC account will be the beginning of commercial operations at that initial plant. After that, funds on deposit will be transferred in an amount equal to 25% of the amount of net proceeds.

The proposed amendments and waivers require the consent from holders of at least a majority of the outstanding notes voting as a single class.

The solicitation is being made to holders of record as of 5 p.m. ET on Oct. 27.

Jefferies LLC (203 363-8273 or 888 708-5831) is the solicitation agent. Ipreo LLC (212 849-3880 or consent@ipreo.com) is the information and tabulation agent.

Stoneway is a privately held New Brunswick, Canada, company based in Buenos Aires and established in 2016 for the purpose of constructing, owning and operating power plants to provide electricity to the wholesale electricity market in Argentina through indirect subsidiaries.

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