Cap Cana amends consent solicitation for 9 5/8% notes

By Laura Lutz

Des Moines, Oct. 24 - Cap Cana SA modified some terms of the consent solicitation for its 9 5/8% senior secured notes due 2013 in response to feedback from noteholders, according to a news release.

There was $250 million principal amount of the notes outstanding when the consent solicitation was announced on Oct. 15.

As previously reported, the company is soliciting consents to amend the indenture to modify the definition of "pro forma net indebtedness" to cure a potential ambiguity that may exist and to modify the definition of "total capitalization" to more accurately reflect Cap Cana's operating circumstances.

Cap Cana announced four changes:

• The definition of "permitted liens" in the indenture will be modified to clarify that any pari passu debt that is incurred will not be secured by the collateral underlying the notes;

• Under the proposed amendment to the definition of "total capitalization," the company would now be able to incur a total of $287 million of debt, compared to $192 million under the original terms of the notes;

• The proposed "total capitalization" amendment was also modified to require that calculation of the amounts under that formula will be subject to quarterly certification by Cap Cana's independent auditor;

• The payment to consenting noteholders was increased to $25.00 from $12.50 per $1,000 principal amount of notes.

The solicitation will expire at 5 p.m. ET on Oct. 26.

Global Bondholder Services Corp. is the information agent (866 873-6300 or collect 212 430-3774. Deutsche Bank (call collect 212 250-2955, attn: Liability Management Group) and Morgan Stanley (collect 212 761-5797 or 800 624-1808, attn: Sarah Downie) are the solicitation agents.

Cap Cana is a Dominican Republic-based resort developer.

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