The repurchase date applicable to those bondholders who have sent an application form in respect of all or part of their bonds as a result of the
change of control event in due time will be 5 April 2019.
If a
change of control occurs, CITGO Holding would be required to repay its senior secured term loan B in full within three business days following such
change of control and to make an offer to purchase its 10.75% senior secured notes.
With the majority bondholders' approval of the alignment of the
change of control provisions in the trust agreements, SMB and the trustees executed the supplemental agreements amending the trust agreements for the Series C and EF Bonds.
The
change of control offer to purchase the 4.75% Senior Secured Notes due 2021 (the "2021 Notes", together with the 2022 Notes, the "Notes") has not been terminated and continues with an expiration date of October 6, 2017.
LIN explains that it is withdrawing the offer solely for one reason: Time has run out, as the purchase date may not be later than 60 days following the date of dissemination of a
change of control offer.
Further, Iluka had dialogue with multiple departments within the government of Mozambique including approval received last week for the proposed
change of control in Kenmare Mining Moma (Mauritius) Ltd.
Furthermore, the
change of control covenants have improved with fewer bonds including a portability feature (which makes not being caught by the
change of control covenant easier if a company is sold, provided that a leverage ratio test is met).
The Chesapeake employees would be paid bonuses just because of the
change of control, and not because a
change of control resulted in their losing their jobs.
The severance payment, however, was contingent only on the first
change of control, not the second (see Letter Rulings 200046005, 200046006, and 200046007).
A key factor in the deal is that a substantial amount of Dynegy s debt is bonds that do not have
change of control provisions, a source familiar with the situation said.
"But you potentially put the bank in an awkward situation if it has to oversee a
change of control while still managing the banking relationship on the other side of the house.