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TPC Group extends forbearance agreement entered after missed coupon
By Wendy Van Sickle
Columbus, Ohio, March 16 – TPC Group Inc. extended the forbearance agreement that was announced on Feb. 3 after it missed a $53 million interest payment on its secured notes the day before, according to a press release.
The company said Wednesday it remains in discussions with a group representing around 90% and 80%, respectively, of the company’s two series of senior secured notes.
The ad hoc group and the company signed a forbearance agreement that the group will not exercise remedies relating to the default that will occur if the company does not make the payments within the 30-day grace period.
The forbearance agreement has been extended until April 18 from March 18.
As previously reported, the group has agreed to provide the company with approximately $52 million of additional liquidity in the form of a commitment to purchase additional senior secured priming notes due 2024.
Proceeds from the new notes will be used to support ongoing operations and to pay fees and expenses associated with the transaction.
The company’s ability to draw on the commitment will be subject to some conditions, including an amendment to the company’s ABL facility.
The ad hoc group members have agreed to approve amendments to the existing indentures to allow for the issuance of the new notes.
The company is advised by Moelis & Co. LLC, Baker Botts LLP., Simpson Thacher & Bartlett LLP and FTI Consulting, Inc. The ad hoc group is advised by Stroock & Stroock & Lavan LLP and Evercore.
TPC Group is a Houston-based processor and service provider of value-added products derived from niche petrochemical raw materials.
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