FESCO Group announces that on May 8, 2015 the Group signed a repurchase agreement, in relation to an up to USD50 million financing secured by its Senior Secured Notes with an international bank.
The repurchase agreement was entered into to partially finance the FESCO Group’s tender offer targeting its U.S.$550,000,000 8.00% Senior Secured Notes due 2018 and U.S.$325,000,000 8.75% Senior Secured Notes due 2020. The public tender offer was initiated by the Group on March 31, 2015 in order to optimize its liability profile, with final results of the tender offer to be announced on May 11, 2015.
The Bonds acquired pursuant to the cash tender offer were transferred to the financing bank under the repurchase transaction, and act as collateral under the repurchase agreement. This collateral may be liquidated by the financing bank upon an early termination of the repo transaction if the Group does not repurchase the bonds or does not comply with the terms of the repo transaction.