Thailand's G Steel amends 10½% notes, exchanges $84.04 million

By Angela McDaniels

Tacoma, Wash., Dec. 13 - G Steel PCL received tenders for $84,042,000 principal amount, or 49.43%, of its $170 million of 10½% notes due Oct. 4, 2010 during an exchange offer that expired on Nov. 29, according to a company news release.

In addition, the company received noteholder approval to amend the terms of the notes at a meeting on Nov. 22. In order for the extraordinary resolution to pass, it had to be approved by at least 75% of the holders present at the meeting.

All outstanding accrued interest was waived, the interest rate was reduced to 3% from 10½% and the maturity date was extended to Oct. 4, 2015.

In the exchange offer, noteholders could exchange 65% of the principal amount of their notes for new G Steel shares at a rate of 30 shares per $1 principal amount of notes.

The $85,958,000 principal amount of bonds not exchanged in the offer will be reduced by 60% to $34,383,200.

On June 30, 2011, the company will repay 35.714% of the reduced principal amount, or $12,279,616, in cash or by offering ordinary shares at the rate of 50 new shares per $1 of notes.

The remaining principal amount will be repaid in cash on the new maturity date.

Wise Management was the financial adviser to the company for the exchange offer.

G Steel is a Bangkok-based integrated hot-rolled coil steel manufacturer.

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