Orazul Energy Perú S.A. has announced the launch of a public cash tender offer for all of its 5.625% senior notes maturing in 2027, with a total outstanding amount of $363.2mn. The transaction is part of a broader financial strategy that includes a new bond issuance to partially refinance this existing debt.
Timeline set for a September 12 expiration
The offer will expire at 5:00 p.m., New York time, on September 12, unless extended or terminated early by the company, subject to applicable law. Holders wishing to participate must tender their securities or submit a guaranteed delivery notice by that date to be eligible for payment. Settlement for repurchased notes is expected around September 17, according to the offer documents released by Orazul Energy Perú.
Repurchased notes will be settled at $1,000 for each $1,000 in principal value, excluding accrued interest. Accrued and unpaid interest will be paid separately up to, but not including, the settlement date, in line with the terms of the bond indenture.
Parallel issuance to support the operation
In parallel with this offer, Orazul Energy is conducting an issuance of new senior notes, exempt from registration under the U.S. Securities Act. Proceeds will be used to finance the repurchase of the 2027 notes and cover related transaction costs.
The company also intends to issue a redemption notice to holders of notes not tendered in the initial offer, using remaining proceeds from the new issuance to redeem outstanding securities according to the bond indenture. However, no assurance is provided that this redemption will be completed.
Legal flexibility and no minimum threshold
The offer is not subject to any minimum amount of notes being tendered, though it depends on the completion of the ongoing bond issuance. Orazul Energy reserves the right to modify, extend or cancel the offer at its sole discretion, in compliance with applicable regulations.
Holders retain the option to withdraw their tendered notes until the earlier of the offer expiration date or the tenth business day following its launch. If the offer remains unsettled after 60 business days, withdrawals will again be permitted unless otherwise directed by regulatory authorities.
