Bulgaria's Petrol gets consent to extend 8 3/8% notes to 2017

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Petrol AD received bondholder approval to make some amendments to its €87,038,000 of outstanding 8 3/8% guaranteed notes due 2012 at a meeting on Dec. 20, according to a company filing with the London Stock Exchange.

The approval will allow Petrol to extend the maturity of the notes to Jan. 26, 2017, remove some covenants and change the minimum denomination of the notes to €100,000. The changes are expected to take effect on Jan. 6.

The consent solicitation began Nov. 11. Originally, the deadline for submitting voting instructions was 5 a.m. ET on Dec. 4, and the meeting date was Dec. 5. The meeting was adjourned to Dec. 20 due to a lack of quorum, and the deadline was extended to 5 a.m. ET on Dec. 19.

The notes are guaranteed by Naftex Petrol EOOD.

The consent solicitation came on the heels of a tender offer and consent solicitation that began Sept. 13 and ended Oct. 4. As previously reported, the company offered to buy to up €10 million of the notes in the offer.

Petrol purchased and canceled €11,779,000 of notes and received consent to extend the maturity date to Jan. 26, 2012 from Oct. 26, 2011 and make the Oct. 26 interest payment on the extended due date.

The purchase price was €850 per €1,000 principal amount of notes plus accrued interest.

Petrol said it is seeking to optimize its liability portfolio by extending the maturity date of the notes and removing certain covenants in the terms and conditions of the notes to provide Petrol and its subsidiaries with operational flexibility in the changing business environment.

Adamant Capital Partners AD (359 2 422 5970 or tstanoykova@acp.bg) was the dealer manager for the tender offer and the solicitation agent for the consent solicitations. Bank of New York Mellon (+44 0 20 7964 4958 or debtrestructuring@bnymellon.com) was the tabulation agent.

Sofia, Bulgaria-based Petrol is a fuel distributor.

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