Foresight seeks consents to extend grace period for 11˝% notes

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – Foresight Energy LP subsidiaries Foresight Energy LLC and Foresight Energy Finance Corp. are seeking consents from holders to amend the 11˝% second-lien senior secured notes due 2023 to extend the grace period to 150 days from 90 days, according to an 8-K filing with the Securities and Exchange Commission.

Previously, in October, the companies launched and noteholders approved a consent solicitation to extend the grace period to 90 days from 30 days.

This latest consent solicitation, which was launched on Friday, would further extend the grace period for the interest payment that was due on Oct. 1 to Feb. 28.

The new consent solicitation expires at 5 p.m. ET on Dec. 19.

Written consent of holders of at least a majority of the notes, voting in a single class, is sufficient to adopt the proposed amendments and waivers.

In the October consent solicitation, the companies also secured consents to waive some defaults or events of defaults arising under the notes’ indenture.

Specifically, the approved changes resulted in amending a section of the indenture to exclude the fiscal period ended Sept. 30 from the requirement that the issuers hold a publicly accessible conference call to discuss the issuers’ financial information for the relevant fiscal period.

Noteholders also approved waivers of any default or event of default arising as a result of the issuers’ failure to make the interest payment that was due to be paid on Oct. 1, which waivers remain in effect, according to Friday’s update.

Global Bondholder Services Corp. (212 430-3774 or 866 794-2200) is information and tabulation agent for the latest consent solicitation.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

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