Petroamazonas EP Announces Successful Results of its Consent

|May 4|magazine11 min read

QUITO, Ecuador, May 4, 2020 /PRNewswire/ -- La Empresa Pública de Exploración y Explotación de Hidrocarburos Petroamazonas EP ("Petroamazonas EP" or the "Company") announced today that it has received the Requisite Consents (as defined below) as of 5:00 p.m., Central European Summer Time (11:00 a.m., New York City time), on May 4, 2020 (the "Expiration Time"), according to Global Bondholder Services Corporation, the Information and Tabulation Agent, for its consent solicitation announced on April 28, 2020 (the "Consent Solicitation"), relating to its 4.625% Notes due 2020 (the "Securities"), unconditionally and irrevocably guaranteed by the Republic of Ecuador ("Ecuador" or the "Republic"). 

Following acceptance of the Requisite Consents, the Company and the Republic will be executing a supplemental indenture to the indenture governing the Securities, effecting the proposed amendments approved in the Consent Solicitation and described in the Consent Solicitation Statement dated as of April 28, 2020 (the "Consent Solicitation Statement"). The proposed amendments will not become operative until the Consent Payment (as defined below) has been paid.

The Securities were originally issued on November 6, 2017 in an aggregate principal amount of U.S.$300,000,000. As a result of scheduled amortization, as of the date of the Consent Solicitation Statement, U.S.$175,000,000 aggregate principal amount of the Securities remain outstanding (the "Outstanding Principal Amount").

The Consent Solicitation expired on the Expiration Time.  The Company expects to pay holders of Securities whose consents were validly delivered and accepted by the Company (the "Consent Payment") promptly in accordance with the Consent Solicitation Statement.

The proposed amendments required valid consents from holders of not less than 75% of the Outstanding Principal Amount of the Securities to become effective (the "Requisite Consents").

As of the Expiration Time, the approximate percentage of the Outstanding Principal Amount of the Securities for which the Company has received and accepted consents is as follows:

Title of Security

ISIN / Common Code

Outstanding Principal
Amount

Percentage of Aggregate
Outstanding Principal
Amount that has Consented

4.625% Notes due 2020 

XS1734077420; XS1734077693 /
173407742; 173407769

U.S.$175,000,000

98.91%

This announcement is for informational purposes only and is not a solicitation of consents of any holders of Securities. The solicitation of consents of holders of Securities has only been made pursuant to the Consent Solicitation Statement.

Citigroup Global Markets Inc. is the Consent Solicitation Agent in connection with the Consent Solicitation. Global Bondholder Services Corporation is the Information and Tabulation Agent in connection with the Consent Solicitation. Lazard Frères is acting as Financial Advisor to Ecuador in connection with the Consent Solicitation.

NONE OF THE CONSENT SOLICITATION AGENT, THE TRUSTEE, THE INFORMATION AND TABULATION AGENT, THE FINANCIAL ADVISOR TO THE REPUBLIC NOR ANY OF THEIR RESPECTIVE DIRECTORS, EMPLOYEES, AFFILIATES, AGENTS OR REPRESENTATIVES HAVE MADE ANY RECOMMENDATION AS TO WHETHER HOLDERS SHOULD HAVE DELIVERED CONSENTS TO THE PROPOSED AMENDMENTS PURSUANT TO THE CONSENT SOLICITATION, AND NO ONE HAS BEEN AUTHORIZED BY ANY OF THEM TO MAKE SUCH A RECOMMENDATION. EACH HOLDER MUST MAKE ITS OWN DECISION AS TO WHETHER TO GIVE A CONSENT.

The Consent Solicitation Statement is available from the Information and Tabulation Agent.

The Information and Tabulation Agent for the Consent Solicitation is:

Global Bondholder Services Corporation
65 Broadway – Suite 404
New York, New York 10006
Attn: Corporate Actions
Banks and Brokers call: (212) 430-3774
Toll free (866)-470-3800
By facsimile:
(For Eligible Institutions only): (212) 430-3775/3779
Confirmation: (212) 430-3774
Email: [email protected]

Any questions regarding the terms of the Consent Solicitation should be directed to the Consent Solicitation Agent or the Information and Tabulation Agent at their respective addresses and telephone numbers set forth on this communication. Requests for additional copies of the Consent Solicitation Statement, the eligibility letter or any other related documents may also be directed to the Information and Tabulation Agent.

The Consent Solicitation Agent for the Consent Solicitation is:

Citigroup Global Markets Inc.
388 Greenwich Street, 7th Floor
New York, NY 10013
Attention: Liability Management Group
U.S. Toll-free: +1-800-558-3745
Collect: +1-212-723-6106

La Empresa Pública de Exploración y Explotación de Hidrocarburos Petroamazonas EP
Av. 6 de Diciembre N34-290 y Gaspar Cañero,
Edificio Villafuerte
Quito, Ecuador 

The Republic of Ecuador
Ministry of Economy and Finance
Av. Amazonas entre Pereira y Unión Nacional de Periodistas 
Plataforma Gubernamental de Gestión Financiera, Pisos 10 y 11, 
Quito, Ecuador

(Financial Advisor to the Republic of Ecuador)

Lazard Frères
121 Boulevard Haussmann
75008, Paris

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SOURCE Empresa Pública de Exploración y Explotación de Hidrocarburos Petroamazonas EP