#Peru #Lima #Senior Notes #Hunt Oil Company

Hunt Oil Company of Peru Initiates Tender Offers for Senior Notes

On March 31, 2025, Hunt Oil Company of Peru L.L.C., operating as a branch in Peru, made a significant announcement regarding cash tender offers for its outstanding senior notes. This marks a strategic move aimed at optimizing its capital structure in alignment with current market conditions. The company announced that it will be tendering any and all of its 6.375% Trust Enhanced Senior Notes due in 2028 and 8.550% Trust Enhanced Senior Notes due in 2033.

The specific notes involved are the 2028 Notes, CUSIP Nos. 445640 AB1 and Regulation S P5300P AB9, which have an original principal amount of U.S.$261,492,000 and a current principal amount of U.S.$184,613,352. The consideration per U.S.$1,000 original principal amount for these notes is set at U.S.$1,025.00, calculated with a scaling factor of 70.60% due to partial amortization. Similarly, the 2033 Notes, with a CUSIP of 445640 AC9, hold an original principal amount of U.S.$500,000,000, offering holders U.S.$1,132.50 for each U.S.$1,000 in original principal amount.

Details of the Offers

The tender offers, as detailed in the Offer to Purchase dated March 31, 2025, are set to provide opportunities for current holders of the notes to optimize their investments. All tendered notes that are accepted for purchase will be canceled, releasing holders from any further payment liabilities related to those notes. Moreover, holders whose submissions are accepted will also receive accrued and unpaid interest from the last interest payment date to the date of settlement, which is expected to occur on April 11, 2025.

Holders wishing to participate must validly tender their notes before the expiration time, which is set for 8:00 AM New York City time (7:00 AM Lima time) on April 7, 2025, unless there is an extension or earlier termination by Hunt Oil in accordance with applicable law. Furthermore, the tendered notes can be withdrawn before the specified deadline, ensuring that holders have the flexibility to make informed decisions throughout the process.

Strategic Implications

This move is anticipated to strengthen Hunt Oil's financial position by managing its debt obligations effectively. By providing a higher cash consideration for notes due to mature in 2028 and 2033, the company is looking to mitigate future financial risks while ensuring that it remains an active participant in the evolving energy sector. It also highlights the company’s strategy of optimizing its funding structure amid fluctuating markets and the need for sustainable financial operations.

Future Opportunities

In addition, as part of the tender offers, holders also have the option to subscribe for new notes being issued. To facilitate this process, a unique identifier code can be obtained from the company’s dealer managers, which may give priority to those wishing to subscribe while tendering.

Hunt Oil has retained BofA Securities, Citigroup Global Markets, Credicorp Capital, and J.P. Morgan Securities as Dealer Managers to assist in the execution of the tender offers and to answer any inquiries regarding this initiative.

In summary, the initiation of cash tender offers by Hunt Oil Company of Peru not only reflects a commitment to managing and optimizing its debt obligations but also provides holders with a lucrative opportunity to evaluate their investment positions favorably. Stakeholders are encouraged to review the complete details available in the Offer Documents provided by the company for guidance and any required actions they may wish to undertake during this offering period.