Swiss Insured Brazil Power seeks waiver under 9.85% notes due 2032

By Susanna Moon

Chicago, Dec. 18 – Swiss Insured Brazil Power Finance Sarl said it began a new consent solicitation on Monday to obtain a waiver under its 9.85% senior secured notes due 2032.

The new consent solicitation will end at 5 p.m. ET on Dec. 21.

The consent payment will be R$0.10 per R$1,000 principal amount.

Specifically, the issuer is asking for approval to allow Celse - Centrais Eleetricas de Sergipe SA to obtain a waiver to the terms of the indenture that trigger an event of default if a change of control of an asset occurs, according to a company announcement.

The company said that a change of control technically occurred when the record title to Celse’s floating storage and regasification unit was transferred in connection with an ordinary course sale-and-leaseback transaction.

To obtain the waivers, the company needs consents from holders of the notes and lenders to the uninsured loan credit agreement owning at least 56.25% principal amount of the outstanding debt.

The company said it was unable to further extend and amend the terms of its previous consent solicitation “due to the complex contractual structure of the overall financing, and under the procedural provisions of the company’s inter-creditor agreement dated April 12,” according to the press release.

As a result, the company ended the solicitation and began a new one.

The information and tabulation agent is D.F. King & Co., Inc. (800 967-0261, 212 269-5550 or celse@dfking.com).

Swiss Insured Brazil is a multi-use Luxemburg special-purpose vehicle issuing repacked debt for Celse. Centrais Eletricas de Sergipe, a Brazilian company engaging in power generation from natural gas thermal plants.

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