Banro gives details of consent bid to amend 10% senior secured notes

By Susanna Moon

Chicago, March 13 – Banro Corp. gave details of the consent solicitation for its $175 million of outstanding 10% senior secured notes in a 6-K filing with the Securities and Exchange Commission.

The consent fee will be $2.50 for each $1,000 principal amount.

The consent solicitation will end at 5 p.m. ET on March 26. The solicitation was announced March 12.

As previously announced, Banro Corp. is seeking consents to amend the notes indenture and collateral trust agreement governing the notes.

The company is soliciting consents for a majority of the outstanding notes.

The company previously said that its second Twangiza mine gold forward sale transaction and the Namoya mine gold streaming transaction requires amending the notes indenture and the related collateral trust agreement to secure the gold delivery obligations under the agreements. The agreements were entered into on Feb. 27 in connection with a $100 million financing, according to a previous press release.

Investment funds managed by Gramercy Funds Management LLC and funds under management by BlackRock Investment Management (UK) Ltd., which together with Gramercy control more than 50% of the principal amount of the notes, have agreed to consent to the amendments, the company noted.

CIBC World Markets Inc. is the solicitation agent.

Banro is a Toronto-based gold mining company.

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