Axalta units get consents to amend 4¼%, 4 7/8%, 3¾% notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 29 – Axalta Coating Systems Ltd. said Axalta Coating Systems, LLC received the necessary consents to amend its €335 million of 4¼% senior notes due 2024 and $500 million of 4 7/8% senior notes due 2024, while Axalta Coating Systems Dutch Holding B BV received consents to amend its €450 million of 3¾% senior notes due 2025.

The consent solicitations were launched on Oct. 18 by the company’s indirect wholly owned subsidiaries as part of a possible internal reorganization of some of the company’s subsidiaries and potential future reorganizations of the company, as previously reported.

Each consent solicitation expired at 5 p.m. ET on Oct. 29.

The amendments will add the company and certain wholly owned subsidiaries as guarantors of the notes; provide that at the time the amendments become operative, the covenants of the indentures would generally apply to the company and its restricted subsidiaries; and otherwise amend the notes in order to effect the proposed restructuring.

The consent fee will be €2.50 per €1,000 principal amount or $2.50 per $1,000 principal amount.

Payment is expected to occur on Oct. 31.

Supplemental indentures were entered into for each series, but they will not become effective until payment is made and some other conditions are met, according to an update on Monday.

The solicitations were conditioned on securing consents for a majority of the 2024 notes or 2025 notes. For the purpose of determining whether the required consents for the 2024 notes were obtained, the 2024 euro notes and 2024 dollar notes voted together as a single class, and the principal amount of 2024 euro notes was converted to a dollar basis using a euro/dollar exchange rate of €1.00 to $1.1502 as of Oct. 17, using Bloomberg.

In addition, the consent solicitations require amendments to the other indenture and related amendments to the company’s senior secured term loan facility and its multi-currency senior secured revolving facility, in each case needed for the proposed restructuring, the company noted.

Barclays (800 438-3242, 212 528-7581 or +44 20 3134 8515) is the solicitation agent. D.F. King (800 515-4507, 212 269-5550, +44 20 7920 9700, axalta@dfking.com or https://sites.dfkingltd.com/axalta) is the information and tabulation agent.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of high-performance coatings systems.

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