Petroplus calls all 3.375% convertibles not tendered in offer

By Angela McDaniels

Tacoma, Wash., Oct. 13 - Petroplus Holdings AG said its subsidiary, Petroplus Finance Ltd., will redeem all of its 3.375% convertible bonds due 2013 that were not tendered into the tender offer that expired on Oct. 9.

The redemption is possible because bondholders voted in favor of an extraordinary resolution to allow the company to redeem the convertibles. Holders voted at a meeting on Oct. 13.

The redemption was conditioned on the receipt of tenders for at least 51% of the convertibles in the offer, and approval was needed from holders of a majority of the convertibles in order to pass the resolution.

As previously reported, holders tendered $466.2 million, or 93.24%, of the $500 million principal amount of convertibles into the offer.

The redemption and the tender offer will both settle on Oct. 16. All holders will receive par plus accrued interest.

The company will use the proceeds from the issue of $400 million of 9.35% senior notes due 2019 and $150 million of 4% convertible bonds due 2015 to finance the purchases.

The tender offer began Sept. 9.

Petroplus is a Zug, Switzerland-based oil refiner.

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