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

By Susanna Moon

Chicago, Dec. 27 – Swiss Insured Brazil Power Finance Sarl said it secured holder support for the waiver needed under its 9.85% senior secured notes due 2032.

The company received consents from holders representing 69.36% principal amount of the notes, “significantly above the requisite consent threshold of 51.25%,” according to a company announcement.

Swiss Insured Brazil said it expects to pay a consent payment of R$0.50 per R$1,000 of notes on Dec. 28 to holders who gave consents by 5 p.m. ET on Dec. 24.

The issuer said on Dec. 18 that it was 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.

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.

The issuer said on Dec. 18 that it began a new consent solicitation for the waiver because 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.”

The consent solicitation had been set to end at 5 p.m. ET on Dec. 21.

The consent payment was announced as R$0.10 per R$1,000 principal amount.

To obtain the waivers, the company previously said it needed 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 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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