Orazul Energy Perú S.A., an electricity producer based in Lima, announced the expiration and final results of its public cash tender offer for all of its 5.625% senior notes due in 2027. The operation, open since September 8, closed on September 12 at 5:00 p.m. New York time.
A strategic debt management move
According to information provided by the tender agent, a total principal amount of $248,381,000, representing approximately 68.39% of the outstanding notes, was validly tendered. Orazul Energy Perú has accepted for purchase all notes submitted and not withdrawn prior to the expiration date. Holders will receive a cash consideration of $1,000.00 for each $1,000.00 in principal amount, in accordance with the terms outlined in the official offer document.
Investors will also receive accrued and unpaid interest on all accepted notes from the last interest payment date up to, but excluding, the expected settlement date of around September 17. The transaction remains subject to certain conditions, including the financing condition specified in the offer to purchase.
Reducing bond exposure amid market conditions
The tender offer is part of a proactive debt management strategy by the company, formerly known as Orazul Energy Egenor S. en C. por A. This significant reduction in bond liabilities may allow the firm to better manage its medium-term obligations while optimising its financing costs in a still-volatile market environment.
No additional details were provided regarding the financing used for the operation or future plans for the remaining notes. The company has not issued further public comments as of the announcement date.
