Theolia agrees bond restructuring with main creditor
Aug 26, 2014 - French wind energy firm Theolia SA (EPA:TEO) said today it had arranged the restructuring of about EUR 125.8 million (USD 166m) worth of convertible bonds with main creditor Boussard & Gavaudan.
With the move the company will reduce to EUR 66 million the amount due with respect to the convertible bond.
The wind park developer and operator said in April it may not be able to pay back the full value of the outstanding Oceane 2007 debt if bondholders request an early repayment by January 1, 2015. The company has now entered into a memorandum of understanding (MoU) with investment group Boussard & Gavaudan, which holds a third of the Oceanes, to amend some terms of the bond issuance contract and to reduce the unit par value of Theolia’s shares from EUR 1.40 to EUR 0.10.
As part of the deal, the wind company will implement an EUR-60-million capital hike by issuing shares with warrants attached, giving existing shareholders a preferential subscription right. By doing so, Theolia will be able to finance a partial early repayment in the amount of EUR 7.266 per Oceane 2007 by March 6, 2015 at the latest.
The restructuring programme will push back the option for bondholders to request early repurchase to January 1, 2020, while both the exchange ratio and coupon will be increased.
The scheme needs to be approved by Theolia’s stockholders and bondholders before December 12, 2014. A concert party representing 15.93% of the share capital has already committed to vote in favour of the move.