Sand Hill seeks extension of 9% bonds, deadline to complete stock sale

By Marisa Wong

Los Angeles, June 28 – Sand Hill Petroleum BV issued a notice of a written resolution to holders of its 9% senior secured €70 million callable bonds, issue 2018/2022 (ISIN: NO0010820616) with a total outstanding amount of €60,881,627.

The notice of a written resolution was issued through bond trustee Nordic Trustee AS under a request from bondholders representing at least 1/10 of the voting bonds and the issuer.

The company has been in discussions with an ad hoc committee of bondholders representing about 77% of the outstanding bonds. They have been discussing since May 2020 the sale of 100% of the shares in the company and redemption of the bonds.

Under a written resolution dated June 1, the holders had agreed to an extension of the maturity date of the bonds to Sept. 30, 2022, conditioned on a share purchase agreement being signed no later than June 22. This deadline was not met.

To further facilitate the stock sale, which is taking additional time, the company wants to further extend the maturity date of the bonds.

The company said it is not currently in a position to fully repay the bonds.

The company is proposing to extend the maturity date to Sept. 30, 2022 as before, but this extension would be conditioned on the share purchase agreement being signed no later than July 12. The other condition is that bondholders approve, via written resolution, no later than July 19 the mechanics and amount applicable to finally settle the bonds.

If any of the new conditions are not met, the bonds will be immediately due and the new maturity date will become ineffective, unless the bondholders have resolved otherwise within a period of five business days.

Each of the bond trustee and bondholders will retain the right to accelerate the bonds upon the occurrence of an event of default. Following approval of this current written resolution, non-repayment of the bonds due to the share purchase agreement not being signed by June 22 will not constitute an event of default, the company noted.

The bond trustee must receive votes by 11 a.m. ET on July 1.

To approve the proposal, either bondholders representing at least two-thirds of the voting bonds must vote in favor of the resolution by the deadline; or at least two-thirds of the bonds voting is in favor with at least 50% of the voting bonds having voted by the deadline.

The bond trustee may contacted at +47 22 87 94 00 or mail@nordictrustee.com.

Based in Amsterdam, the oil and gas exploration and production services company has subsidiaries in Hungary and Romania.

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