(Trinidad and Tobago Newsday, 7.Jun.2019) — Trinidad Petroleum Holdings Ltd’s (TPHL) decision to amend the terms of its exchange offer for its bonds due this year and 2022, has been welcomed by bondholders. The bondholders established a committee which comprises a large group of international investment firms who are holders of the existing bonds and additional significant holders (the supporting holders).
Together, these people hold an outstanding aggregate principal amount of US$273.9 million of the existing bonds. In a statement, the committee said it has entered into an exchange support agreement with TPHL to participate in the amended exchange offer.
This amount does not include the US$152.6 million of existing bonds which have already been tendered as per TPHL’s announcement last month. Together with the holdings of supporting holders, this amounts to a total of $426.5 million. In deciding to support the amended offer, the supporting holders considered favourable changes to commercial terms, information made public by TPHL related to its conditional term loan commitments and results of extensive discussions with the company related to the legal review of matters such as transaction structure and inter-creditor matters.
The committee said the supporting holders welcomed the collaborative efforts made by TPHL, its legal and financial advisors. Supporting holders also welcomed TPHL’s intention to communicate with market participants in a frequent and transparent manner going forward. The committee urged all bondholders to carefully consider all the terms of the amended offer, when making their own independent appraisal of the risks and merits in participating in the offer. In May, TPHL announced that it has received loan commitments of up to U.S.$720 million in term loans from a syndicate of banks led by Credit Suisse AG, Cayman Islands Branch as global coordinator. Finance Minister Colm Imbert has congratulated TPHL for securing conditional commitments to refinance Petrotrin’s US$850 million bond issue. In a tweet, Imbert said the repayment of the bond issue is due in August. “This Petrotrin debt was not guaranteed by the Government.” Imbert also said the refinancing “is also not guaranteed by Government.” Responding to questions in the Senate on Tuesday, Imbert indicated that some aspects of this agreement could be made public.