Indiantown Cogeneration seeks consents for 9.77% first mortgage notes

By Susanna Moon

Chicago, Feb. 15 - Indiantown Cogeneration, LP and Indiantown Cogeneration Funding Corp. said they are soliciting consents to amend their outstanding 9.77% first mortgage bonds, series A-10, due Dec. 15, 2020.

The issuers are seeking authorization of the refinancing of tax-exempt bonds consisting of $113 million of the Martin County Industrial Development Authority's industrial development refunding revenue bonds (Indiantown Cogeneration, LP Project), series 1994A, and $12.01 million of the authority's industrial development refunding revenue bonds (Indiantown Cogeneration, LP Project), series 1994B, with new subordinated tax-exempt debt.

Indiantown also is seeking to simplify the tests for incurring additional debt under the notes, according to a press release.

The consent solicitation will end at 5 p.m. ET on Feb. 28. Holders must be of record as of Feb. 14.

The consent fee will be $1.50 in cash per $1,000 principal amount of bonds.

The offer is conditioned on the closing of new subordinated bonds.

If Indiantown receives the required consents, it will execute a supplemental indenture that will become effective upon the closing of the new subordinated bonds.

The issuers must obtain consents from holders of a majority of the outstanding notes.

D.F. King & Co., Inc. (800 859-8509) is the information, tabulation and paying agent. Morgan Stanley & Co. LLC (800 624-1808) is the solicitation agent.

Indiantown owns and operates a non-utility electric generating facility in Bethesda, Md.

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