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Nigeria-focused Seven Energy gets more time to begin consent bid
By Angela McDaniels
Tacoma, Wash., Oct. 18 – Nigeria-focused Seven Energy International Ltd. now has until 4 a.m. ET on Oct. 26 to begin a consent solicitation that is required under an agreement reached with the holders of 77% of its 10½% senior secured notes and 10¼% senior secured notes, according to a company news release.
As previously reported, Seven Energy missed the interest payment due Oct. 11 on the 10½% notes.
The noteholders party to the agreement agreed to amend the note terms to allow capitalization of interest payments as follows:
• Automatic capitalization of interest payments due Oct. 11;
• Option to capitalize interest payments due April 11, 2017 and Oct. 11, 2017; and
• Option to capitalize interest payments due April 11, 2018 if operational covenants have been satisfied and Seven Energy has raised at least $50 million of equity by that date.
The company plans to implement the terms of the agreement by way of an amendment agreement for the 10½% notes and a consent solicitation for the 10¼% notes.
Under the original agreement, the company was required to launch the consent solicitation within five business days of Oct. 11. The noteholders agreed to extend this to Oct. 26.
The consent solicitation will run for 21 calendar days and, to the extent the required majority is not met, schemes of arrangement for each series of notes will be launched shortly afterward to implement the agreement, the company said.
If the agreement is implemented by way of the consent solicitation, holders who give their consents will receive a fee of 0.75%.
In the schemes of arrangement, noteholders who enter into or accede to the lock-up agreement by the voting instruction deadline will receive a fee of 0.75% of the principal amount of the locked-up debt for which the holder voted for the scheme or schemes of arrangement.
D.F. King Ltd. (+44 20 7920 9700, seven@dfkingltd.com, +44 20 77 76 75 74 or debtteam@dfkingltd.com) is the information agent.
The energy company is based in Lagos and London.
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