Lopez Holdings tender offer for unrestructured debts expires

Lopez Holdings Corp., formerly Benpres Holdings Corp., on Monday announced the expiration of its tender offer for unrestructured debt, which gave creditors the opportunity to sell about $41 million back to the company at full face value. In a statement to the Philippine Stock Exchange, Lopez Holdings said it offered to purchase for cash at their par value, any and all of its outstanding $150-million 7.875-percent Notes (Eurobonds) due 2002 issued on June 19, 1997, and Series A-2 Long Term Commercial Papers (LTCPs) issued on September 17, 1996 and October 1, 1996. Along with the offer to purchase the LTCPs, the company solicited proposed amendments to the Trust Agreement dated September 12, 1996 covering the LTCPs. The offer to purchase the Eurobonds began on August 2, 2011 (9 a.am., New York City) and expired on September 1, 2011 (5 p.m., New Tork City). ING Bank acted as Dealer Manager, and Bondholder Communications Group LLC served as the Informational and Tender Agent for the Eurobonds. A total principal amount of $13.966 million of the Eurobonds, representing about 71 percent of the outstanding Eurobonds, were validly tendered and not validly withdrawn, all of which have been accepted for purchase by Lopez Holdings. The offer to purchase the LTCPs and the consent solicitation began on August 3, 2011 (9 a.m., Manila) and expired on September 1, 2011 (5 p.m., Manila). Securities Transfer Services Inc. served as the Information Agent for the offer to purchase the LTCPs and the consent solicitation. The payment date for both offers is expected on or around September 6, 2011. A total of P785.3 million of LTCPs, representing about 91 percent of outstanding LTCPs, were validly tendered and not validly withdrawn. The company also got the consent of a majority of the LTCP holders for the proposed amendments to the Trust Agreement. Unrestructured obligations of Lopez Holdings to-date stand at $7.5 million, down from $560 million when the company declared a standstill in 2002. --CMA/OMG, GMA News