Chile's Pampa Calichera seeks consents to amend $250 million 7¾% notes

By Susanna Moon

Chicago, July 26 - Sociedad de Inversiones Pampa Calichera SA (Pampa Calichera) said it began a consent solicitation for its outstanding $250 million principal amount of 7¾% senior secured notes due 2022.

The company is soliciting consents to amend the notes to remove the covenants relating to the incurrence of additional debt, restricted payments, liens, transactions with affiliates and asset sales, as well as to add the covenant relating to negative pledge, according to a company press release.

Pampa Calichera also is seeking to amend the share pledge agreement to revise the mechanism for triggering its obligation to pledge additional Sociedad Quimica y Minera de Chile SA shares to maintain the minimum collateralization ratio if the collateralization ratio remains less than the minimum collateralization ratio during a predefined period of time.

Holders will receive a fee of $10 in cash per $1,000 principal amount of notes for which consents are delivered by the end of the offer at 5 p.m. ET on Aug. 15. They must be of record as of July 24.

The company must receive consents from holders of a majority of the outstanding notes to amend the notes.

Global Bondholder Services Corp. (866 736-2200 or collect 212 250-2955, attn: corporate actions) is the information and tabulation agent.

Deutsche Bank Trust Co. Americas is the trustee for the notes, and Deutsche Bank Luxembourg SA is the Luxembourg paying agent and listing agent.

The Santiago-based company is a specialty chemicals and fertilizers producer. For the past four years, Pampa Calichera said its only activity has been to invest in shares of Sociedad Quimica y Minera de Chile SA.

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