Malaysia's IOI gets needed consents for 4 3/8% notes and 5¼% notes

By Susanna Moon

Chicago, Sept. 23 - IOI Corp. Bhd. said it received the needed consents under the consent solicitation relating to IOI Investment (L) Bhd.'s $600 million of 4 3/8% notes due 2022 and IOI Ventures (L) Bhd.'s $500 million of 5¼% guaranteed notes due 2015.

Separate meetings for each series of notes were held on Sept. 23 to pass a resolution to demerge IOI Properties Group Sdn. Bhd., as previously announced.

The company needed to secure the votes of at least 75% of those cast at either meeting.

The company said on Sept. 17 that it amended the consent fee and the consent fee deadline under the consent solicitation for the two series of notes that launched on Aug. 29.

The consent fee was amended to $4.00 for each $1,000 principal amount of notes, up from $2.00 per $1,000 of notes.

Noteholders who voted in favor of the demerger by the final voting deadline at 4 a.m. ET on Sept. 18, extended from 11 a.m. ET on Sept. 11, will receive the consent fee.

Payment of the consent fee was conditioned on the measure passing at the Sept. 23 meetings. Previously, noteholder meetings were held on July 22 and Aug. 7, but noteholders did not pass the extraordinary resolution presented at either meeting.

Citigroup Global Markets Ltd. is the consent solicitation agent, and HSBC Ltd. (+852 2822 4423 / +852 2822 1319, attn.: Thomas Li / Eric Cheng, thomasctli@hsbc.com.hk / erickkcheng@hsbc.com.hk) is the tabulation agent.

Previous meetings

Separate meetings were held on July 22 for the holders of IOI Investment's 4 3/8% notes due 2022 and the holders of IOI Ventures' 5¼% guaranteed notes due 2015.

Each meeting required a quorum of holders representing more than 50% of the principal amount of the outstanding notes. However, the quorum was not met, so the July 22 meetings were adjourned to Aug. 7.

The quorum for each adjourned meeting was simply one or more bondholders. In order for the proposal to pass at a meeting, at least 75% of the votes cast at that meeting had to be in favor of the proposal. The extraordinary resolution did not pass at the adjourned meetings.

On Aug. 7 IOI said its board of directors would further deliberate its next course of action.

As noted before, the demerger is expected to be completed in the fourth quarter of 2013. Upon demerging, the property development business would be renamed IOI Properties Group Bhd.

IOI is a palm oil and property company based in Putrajaya, Malaysia.

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