Guatemala’s Energuate seeks 5 7/8% noteholder consent to amend loan

By Marisa Wong

Morgantown, W.Va., Nov. 28 – Energuate Trust has begun a solicitation of consents from holders of its outstanding 5 7/8% senior notes due 2027 issued through trustee Intertrust SPV (Cayman) Ltd.

The trust is seeking noteholder consents to some proposed amendments to the loan agreement dated May 3, 2017 with Distribuidora de Electricidad de Occidente, SA (Deocsa) and Distribuidora de Electricidad de Oriente, SA (Deorsa) as borrowers, Credit Suisse AG, Cayman Islands Branch as lender and Bank of New York Mellon, as administrative agent.

The 5 7/8% notes were issued under an indenture dated May 3, 2017 with Deocsa and Deorsa as parent guarantors and Bank of New York Mellon as trustee.

The proposed amendments would amend the loan agreement in connection with Inkia Energy Ltd.’s sale of substantially all of its assets, including about 91% of the equity interests in Deocsa and roughly 93% of the equity interests in Deorsa, to holding companies indirectly owned by funds managed by I Squared Capital Advisors (US) LLC and some minority co-investors.

The consent solicitation will expire at 5 p.m. ET on Dec. 7.

The solicitation is conditioned on the receipt of consents from holders of a majority in principal amount of the outstanding notes.

The issuer is offering a consent fee of $2.50 in cash for each $1,000 principal amount of notes to holders of record as of 5 p.m. ET on Nov. 27 who deliver their consents.

The company will pay the consent fee at or immediately before the Inkia acquisition closes.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is solicitation agent, and D.F. King & Co., Inc. (866 530-8636, 212 269-5550 for banks and brokers, energuate@dfking.com) is information and tabulation agent for the solicitation.

Through Deocsa and Deorsa, Energuate is an energy distributor in Guatemala.

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