Sequa Petroleum misses Oct. 31 interest payment on 5% convertibles

By Angela McDaniels

Tacoma, Wash., Nov. 14 – Sequa Petroleum NV has not paid the interest due Oct. 31 on its $204.4 million of outstanding 5% convertible bonds due 2020, according to a company news release.

The trustee has not yet declared a formal default. To Sequa’s knowledge, the trustee has not received written instructions from holders of 25% of the bonds to do so.

The company's funding is provided by Sapinda Invest Sarl and Sapinda Asia Ltd. through $62.5 million of convertible loan facilities, of which $7.6 million has been drawn.

The company has drawdown requests outstanding for the interest payment and expects to receive the money soon.

According to the news release, the company has received six drawdowns under the loans totaling $2.63 million between June 30 and Oct. 25, although these drawdowns have not matched the timing or amounts requested by the company.

Sequa Petroleum is a London-based energy company.

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