Senvion launches second consent solicitation for 3 7/8% notes

By Sarah Lizee

Olympia, Wash., April 15 – Senvion Holding GmbH announced a second consent solicitation relating to its €400 million 3 7/8% senior secured notes due 2022, according to a filing with the London Stock Exchange.

The company is proposing amendments to the indenture relating to the notes to allow the incurrence by the group of new financing and related liens and to amend related covenants and events of default.

Adoption of the proposed amendments requires the consent of the holders of a majority of the outstanding notes.

Holders will not be paid a fee in connection with the solicitation.

The consent solicitation will expire at 11 a.m. ET on April 18.

As previously reported, the company received consents from the holders of a majority of the notes in a consent solicitation that began earlier this month.

The company was soliciting consents to amend the indenture to require the instruction from holders of a majority of the principal amount of notes then outstanding before the notes can be accelerated following certain events of default.

On April 8, the company amended the consent solicitation to add a second proposed amendment in connection with the group’s discussions with creditors and other financing sources, as well as its main shareholder, to secure financing for the group.

That second amendment makes it an event of default for the parent guarantor or any of its subsidiaries to incur any debt, disqualified stock or preferred stock without the prior approval of the holders of a majority of the outstanding notes under any debt instrument approved by the competent insolvency court that is provided by banks, financial institutions, credit or investment funds with commitments that exceed €30 million subject to some exceptions.

Both proposed amendments are now effective.

Because the needed consents were received, the company terminated the first consent solicitation on April 9. That consent solicitation began April 5 and had been scheduled to end at 11 a.m. ET on April 10.

The company did not offer a consent fee.

Senvion GmbH filed a petition April 9 with a local court in Hamburg, Germany, to begin preliminary self-administration proceedings under section 270 of the German Insolvency Code.

Refinancing discussions with lenders have so far not come to a positive conclusion, according to a news release.

Lenders and major bondholders are currently continuing discussions around a financing offer to secure the continuation of operations, which the company said may allow it to successfully exit this process.

The preliminary self-administration proceedings relate to Senvion and Senvion Deutschland GmbH. Senvion Holding, Senvion SA and Senvion Topco GmbH are expected to file for insolvency this week.

The tabulation agent and information agent for the consent solicitation was Lucid Issuer Services Ltd. (+44 20 7704 0880 or senvion@lucid-is.com).

Hamburg, Germany-based Senvion manufactures wind turbines.

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