PT. Gajah Tunggal Tbk Announces Consent Solicitation for Its 8.375% Senior Secured Notes Due 2022
February 01, 2021 at 04:21 am EST
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PT. Gajah Tunggal Tbk announced that it has commenced a consent solicitation to approve certain proposed amendments as described in the consent solicitation statement dated as of February 1, 2021 to its indenture dated as of August 10, 2017, as amended and supplemented by a first supplemental indenture dated as of January 8, 2019, governing its 8.375% Senior Secured Notes due 2022, guaranteed by its subsidiaries. The Proposed Amendments require the consents of the holders of a majority in aggregate principal amount of the Notes outstanding. As of February 1, 2021, the aggregate principal amount of the Notes outstanding was USD 250 million. The deadline for the delivery of consents, prior to which a consenting holder will be entitled to receive a consent fee, is 5:00 p.m., Central European time, on February 17, 2021, unless extended or terminated and subject to the conditions in the Consent Solicitation Statement. Subject to the conditions in the Consent Solicitation Statement, holders who validly deliver their consents to the Proposed Amendments at or prior to the Expiration Time will receive a cash payment equal to USD 3.00 per USD 1,000 principal amount of Notes on February 22, 2021, the expected settlement date. Holders who deliver consents will not be able to revoke such consents. The Proposed Amendments would, as described more fully in the Consent Solicitation Statement, modify the restrictions on the incurrence of additional indebtedness to permit the Company to incur and secure additional indebtedness for the purpose of refinancing the Issuer's existing senior secured loan facilities.
PT Gajah Tunggal Tbk is an Indonesia-based integrated tire manufacturer. The Company produces and distributes tires for passenger car, sport utility vehicles (SUVs), commercial, off-the-road, industrial and motorcycles. It also manufactures and distributes other rubber related products, such as synthetic rubber, tire cords, inner tube, flap, o-ring and others. The Company owns and operates an integrated tire manufacturing facility in Indonesia. The Companyâs products include GT LUG, GT MAX TRACTION, GT MUD TRACTION, GT SUPER, GT SUPER 88, GT SUPER 88N and GT SUPER GRIP. The Companyâs installed production capacity for passenger car radial tires (PCR), TBR tires, bias tires and motorcycle tires 45,500, 2,300, 13,000 and 83,000 tires per day respectively.