Pearl Holding will miss June coupon payment due to restructuring

Chicago, June 15 – Pearl Holding III Ltd. announced that it will not pay the coupon due on its $175 million 9˝% senior secured notes due 2022 in June, according to a notice.

Pearl does not plan to make the payment during the grace period, either.

The company had previously announced that it entered into a restructuring support agreement with an ad hoc committee on May 26.

The company is planning to implement a restructuring in respect of the notes via a scheme of arrangement, aimed at strengthening the company’s financial stability and enhancing its ability to continue to serve its customer and creditors.

If the restructuring is successful, the notes will be canceled and claims against the company regarding the notes will be discharged.

In exchange, noteholders will receive a cash payment in an aggregate amount of $23.25 million, newly issued 9% senior secured notes due 2025 in an aggregate principal amount of $66.5 million to be issued by the company and newly issued perpetual notes in an aggregate principal amount of $83.5 million to be issued by Pearl II.

Interest on the new notes will start to accrue interest on July 1, even though the actual notes may be issued after that date.

Noteholders representing over 75% of the outstanding principal amounts of the notes have signed up to the restructuring support agreement by the consent fee cut-off date of June 16.

Noteholders are encouraged to accede to the support agreement by the cut-off time of 5 a.m. ET on June 16 in order to be eligible for their portion of the consent fee.

Morrow Sodali Ltd. is the information agent (pearl@investor.morrowsodali.com, https://bonds.morrowsodali.com/pearl).

Pearl Engineered Solutions provides high precision tools and complex injection molded components. Headquarters are in Hong Kong.

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