Bondholders of Metalcorp's EUR 140m (EUR 71m outstanding) 7% 2022 notes accepted today (18 November) the counterproposal presented by Germany's investor protection association Schutzgemeinschaft der Kapitalanleger (SdK), with a quorum of 43.42% and approval rate of 99.77%, according to two sources close to the situation.
The bond's maturity will be extended to 2023 and the coupon increased to 8.5%, while bondholders who attended today's meeting will receive an additional 0.5% participation fee, pushing the interest rate to 9%, said the sources.
This was the bondholders' second meeting following an inquorate first meeting last month.
Bondholders to the Europe and Africa-focused minerals group had been expected to vote in favour of the approval and the company's EUR 325m 8.5% senior secured 2026s shot up by almost five points yesterday to 50.09-mid from the lows of 28-mid the end of last month.
Munich-based law firm DRM Legal is advising the 7% 2022 group, while Houlihan Lokey and Kirkland & Ellis are advising a large group of the 8.5% 2026 bondholders, as revealed by this publication.
Metalcorp is receiving legal advice from Norton Rose Fulbright. One Square Advisors have a mandate company-side to provide advice with regards to the 7% 2022 bondholders.
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