Windsor Petroleum extends consent solicitation for 7.84% notes

New York, Oct. 28 - Windsor Petroleum Transport Corp. said it extended the consent solicitation to approve the sale of four very large crude carrier vessels that serve as collateral for its 7.84% term secured notes due 2021.

The expiration is now 5 p.m. ET on Nov. 4 instead of 5 p.m. ET on Oct. 28.

As announced on Oct. 15, Windsor is offering a consent fee of $1 per $1,000 principal amount.

The company said it is seeking consents to amend the indenture and amend or terminate related collateral and other agreements.

The purpose of the consent solicitation is as follows:

• To approve the sale of the m.t. British Pioneer, one of four collateral vessels related to the notes;

• To provide for the British Pioneer's release as collateral under the related collateral agreements; and

• To amend and clarify other indenture provisions, collateral agreement provisions and management agreement provisions.

The proposal will also approve the sale in future years, if necessary, of the m.t. British Purpose, m.t. British Progress and m.t. British Pride, the three other collateral vessels related to the notes, and the release of each of the other collateral vessels as collateral under the related agreements in the event of each such sale.

As part of the proposal, the management agreement for the British Pioneer will be amended to provide the trustee under the indenture and Frontline Ltd., the manager of the British Pioneer, additional flexibility for getting an adequate bid for the sale of the vessel and to permit the manager to charter the British Pioneer in the spot charter market, if required, after the charter termination on Jan. 2 and prior to the sale and delivery of the British Pioneer, according to a company press release.

Corresponding amendments to the management agreements for the other collateral vessels will also be made.

Windsor said it is soliciting consents because its efforts to enter into a replacement charter for the British Pioneer have failed due to current conditions in the charter market for very large crude carrier vessels.

The manager has determined that no acceptable replacement charter is expected to be available after the expiration of the British Pioneer's charter, the release noted.

Although the current charters for the three vessels will not end until at least February 2012, July 2012 and July 2012, respectively, Windsor is seeking to pre-approve the sale and to amend the indenture in order to avoid incurring the additional expense of seeking further bondholder consent.

Jefferies & Co., Inc. (877 877-0696 or collect 212 284-2435) is the solicitation agent. D.F. King & Co., Inc. (800 967-4612 or 212 269-5550 for banks and brokers) is the information agent.

The issuer is a Hamilton, Bermuda-based special-purpose entity formed to finance the construction of four very large crude carrier vessels under a long-term time charter to BP Shipping.

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