Business
Frontera Announces That it Intends to Commence a Consent Solicitation to Amend the Indenture Relating to its Outstanding Notes
Frontera Announces That it Intends to Commence a Consent Solicitation to Amend the Indentu...
About this update from Frontera Energy Corporation
[{"type":"text","content":"\n\n\n\nFrontera Announces That it Intends to Commence a Consent Solicitation to Amend the Indenture Relating to its Outstanding Notes\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Nov. 12, 2018\n\n\n\nTORONTO, Nov. 12, 2018 /CNW/ - Frontera Energy Corporation (TSX: FEC) (\"Frontera\" or the \"Company\"), today announced that it intends to commence a consent solicitation to amend the indenture governing its outstanding 9.7% Senior Unsecured Notes due 2023 (the \"Notes\").\nThe Company is proposing to amend certain restrictions relating to \"Limitations on Restricted Payments\" in the Indenture to, among other changes, replace an existing basket permitting Restricted Payments (as such term is defined in the Indenture), of up to U.S.$40 million with a new basket permitting payments of up to U.S.$100 million per year, on a cumulative basis, subject to meeting certain financial ratio tests and add a new basket permitting Restricted Payments in respect of certain proceeds from the sale of Unrestricted Subsidiaries (as such term is defined in the Indenture), subject to meeting certain financial ratio tests. These proposed amendments would be in addition to other existing provisions in the Indenture permitting the Company to make additional Restricted Payments in various circumstances, including a provision related to its Consolidated Net Income (as such term is defined in the Indenture). \nThe Company is seeking these amendments to give the Company flexibility to use existing cash resources and expected future cash resources to implement measures expected to enhance shareholder value. These measures may include accelerating or increasing share buyback programs, dividend payments and Investments (as such term is defined in the Indenture). No decision has been made by the Company to make any such payments at this time, other than its existing share buy-back program. \nAdditional details about the consent solicitation will be provided in the Consent Solicitation Statement which will be sent to noteholders at the time of launch. \nThis press rele...