GP Investments receives consents needed to amend 10% perpetual notes

By Angela McDaniels

Tacoma, Wash., Oct. 27 - GP Investments, Ltd. received consents from holders of more than a majority of its $190 million principal amount of 10% perpetual notes during a consent solicitation that expired at noon ET on Oct. 26, according to a company news release.

The consents received allowed the company to execute a supplemental indenture amending the indenture governing the notes.

The amendments eliminate the debt service reserve account and give GP Investments the option to call a portion of notes. Previously, it could only call them in whole.

The company said the amendment to the optional redemption provisions gives it greater flexibility and will allow it to implement changes in the composition of its capital structure that it may deem necessary or appropriate from time to time.

GP Investments expects to have sufficient funds to make the interest payments on the notes and said that eliminating the debt service reserve account will give it greater liquidity to be used for operating its business and the businesses of the GP Group.

Holders who delivered consents will be paid a consent fee on Oct. 29.

The consent solicitation began Oct. 13.

Deutsche Bank Securities Inc. (866 627-0391) was the solicitation agent, and Lucid Issuer Services Ltd. (+44 0 207 704 0880, Attention: Lee Pellicci/David Shilson) was the information agent.

GP Investments is a Hamilton, Bermuda-based private equity firm focused on the Latin American market.

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