Mexico’s Latina Offshore seeks to block 100 bps step-up on 10% bonds

By Toni Weeks

San Luis Obispo, Calif., Aug. 5 – Latina Offshore Holding Ltd. is seeking approval at a bondholder meeting to amend its 10% senior secured bonds due 2016 to remove the step-up coupon provision, according to a notice from bond trustee Nordic Trustee ASA.

Under the bond agreement, the fixed rate will step up to 11% from 10% on the interest payment date in July, and Latina is seeking bondholder approval to keep the rate at 10%.

Completion of the proposal is conditional on the parent contributing $25 million principal amount of bonds in the form of additional paid-in equity and the discharging and canceling of those bonds, the notice said.

The meeting will be held on Aug. 19 in Oslo. To approve the proposal, bondholders representing more than two-thirds of the voting bonds represented in person or by proxy at the meeting must vote in favor of the proposal. In order to have a quorum, at least half of the voting bonds must be represented at the meeting.

Latina said that bondholders representing more than two-thirds of the voting bonds plan to vote in favor of the proposal.

The issuer is the offshore division of Mexico-based Constructora y Perforadora Latina SA.

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