Cosan solicits consents for 5% notes due 2023, 9½% notes due 2018

By Susanna Moon

Chicago, Nov. 12 – Cosan Luxembourg SA said it began a consent solicitation for waivers to restrictive covenants and related defaults and events of default for two series of its notes.

The company is seeking to amend its $500 million principal amount of 5% senior notes due 2023 and R$850 million principal amount of 9½% senior notes due 2018, according to a company press release.

Cosan Luxembourg is the issuer of both series; Cosan SA Industria e Comercio is the guarantor of the 5% notes.

The consents for the waivers would allow Cosan to distribute all of its equity interests in a newly created holding company that will own all of Cosan’s equity interest in Companhia de Gas de Sao Paulo – Comgas to shareholders of Cosan.

The consents also would allow the company to procure the assumption by the spun-off Comgas group of a proportion of Cosan’s existing or future debt, provided that the assumption of debt is permitted under the terms of that debt.

By granting a consent to the waivers, each holder of the notes is consenting to the proposed transaction and giving its waivers to any covenants, the release noted.

The solicitation will end at 5 p.m. ET on Nov. 20. Holders must be of record as of 5 p.m. ET on Nov. 11.

The consent fee will be $10.00 per $1,000 principal amount or R$10.00 per R$1,000 principal amount.

The information and tabulation agent is D.F. King & Co., Inc. (212 269-5550 collect or 877 864-5060 or e-mail cosan@dfking.com).

Banco Bradesco BBI SA, Itau BBA USA Securities, Inc., BofA Merrill Lynch (888 292-0070 or 646 855-8988 collect), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057 collect) and Santander Investment Securities Inc. are the solicitation agents.

Cosan is an ethanol and sugar company based in Sao Paulo.

© 2015 Prospect News.
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