Indonesia’s KrisEnergy gains consents to restructure 6¼%, 5¾% notes

New York, Nov. 28 – KrisEnergy Ltd. said it received the requested consents for the financial restructuring of its S$130 million 6¼% notes due 2017 and S$200 million 5¾% notes due 2018, according to a company announcement.

As of the earlybird consent expiration date of 4 a.m. ET on Nov. 29, the quorum requirements for each series of notes had been met and more than 75% of the votes cast were in favor of the resolutions, again for each series of notes.

KrisEnergy also said it was extending the earlybird consent deadline to 4 a.m. ET on Dec. 2.

The consent deadline remains unchanged at 8:30 p.m. ET on Dec. 6 for the 6¼% notes and 9:30 a.m. ET on Dec. 6 for the 5¾% notes.

Noteholder meetings will follow 48 hours after.

The earlybird consent fee is 50 basis points. There is no other consent fee.

As announced on Nov. 16, the company is seeking approval from noteholders to exchange its existing notes for new senior unsecured notes.

These new notes will have maturity dates five years longer than the maturity dates of the existing series being exchanged. Coupons for the new notes would be up to 7%, comprising a mandatory cash coupon of 4% from the fifth coupon payment on and an additional coupon of up to 3% linked to oil prices.

The company is also asking holders to irrevocably waive any and all existing events of default or potential events of default under the existing notes trust deed and the terms and conditions of the existing notes that may have occurred or may occur as a result of the adoption of the proposed restructuring plan.

The company also wants to replace existing financial maintenance covenants with a debt incurrence covenant.

“This restructuring is essential for the survival of KrisEnergy and without which there is no guarantee that the company can continue to operate and meet its various obligations. The consent solicitation is a critical element of the restructuring and is aimed at providing the company with a stable and sustainable capital structure and an enhanced liquidity position,” Jeffrey S. MacDonald, KrisEnergy’s interim chief executive officer, said in the release announcing the solicitation.

“There has been no sustained improvement of any magnitude in oil prices, and markets remain volatile. Our liquidity is severely limited despite the steps we have taken over the last 18 months to counter external factors out of our control that impact our ability to execute our business plan.”

A noteholders meeting for consideration of the extraordinary resolution containing the company’s proposals will be held at 8:30 p.m. ET on Dec. 8 in Singapore.

Standard Chartered Bank (+65 6596-9645) is the solicitation agent. Tricor Singapore Pte. Ltd. (+65 6236-3550, 65 6236-3555 or corporateactions@sg.tricorglobal.com) is the tabulation agent.

The issuer is a Jakarta-based oil and gas company.

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