AusGroup noteholders to vote on Oct 19 on second extension of coupon maturity date

SINGAPORE - AusGroup has fixed a meeting for holders of its $110 million medium term notes to vote on a possible extension of the maturity date, according to a consent solicitation notice released on Thursday (Sept 27).

Noteholders will be asked to consider and potentially pass an extraordinary resolution to again extend the maturity date of the notes, which are now due on Oct 20 with a coupon rate of 8.45 per cent.

The new maturity date would be four years after satisfying the conditions precedent in a third supplemental trust deed, which would be executed upon the passage of the extraordinary resolution.

Interest on the notes would be tweaked, to 5 per cent for the first year after the third supplemental trust deed conditions are satisfied, 6 per cent for the second year, and 7 per cent a year from then on.

The extraordinary resolution must be passed by at least 75 per cent of the votes cast.

Other items up for approval at the meeting include providing for a make-whole premium of $7,680.96 for each note, to be paid on Oct 20.

The notes, issued in 2014, were originally due in 2016 with a 7.45 per cent coupon rate, until noteholders agreed to extend the payout date after the first consent solicitation exercise.

AusGroup has already held three informal meetings with noteholders this year.

The upcoming vote will be held at 10am on Oct 19, at Ocean Financial Centre.