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Trinidad Generation Unlimited (TGU) Announces Tender Offer

On June 2, 2025, Trinidad Generation Unlimited, a prominent company from Trinidad and Tobago, made a significant announcement regarding its financial operations. The company is commencing a cash tender offer aimed at repurchasing all outstanding 5.250% Senior Unsecured Notes scheduled to mature on November 4, 2027. This strategic decision marks a proactive step in managing the company’s financial obligations and offers bondholders an opportunity to sell their interests under favorable terms.

Details of the Offer

The cash tender offer is designed to buy back any outstanding notes, amounting to approximately US$540 million prior to amortization. As of now, US$450 million is the outstanding figure reflecting amortization. Under the offer, holders of these notes will receive US$1,009.50 for every US$1,000 principal amount, adjusted according to the amortization factor, which stands at 83.33%.

Conditions of the Offer

The tender offer is subject to specific conditions outlined in the Offer to Purchase document issued today. Although the offer is contingent upon the successful conclusion of a Financing Transaction that will help fund this initiative, it does not depend on a minimum principal amount being tendered. The company retains the right to amend, modify, or terminate the offer at its discretion, observing applicable laws.

It’s important to note that this tender offer is scheduled to expire on June 10, 2025, by 5:00 PM EDT, unless the company decides to either extend it or terminate it earlier. Holders seeking to benefit from this offer must submit a valid tender by the expiration date.

Amortization and Payment Process

The payment for the notes submitted on or before the expiration date, which are accepted under the tender offer, will include accrued and unpaid interest from the last interest payment date and is anticipated to be processed around June 16, 2025, the proposed Settlement Date. Unconditional early withdrawal is permissible up until the offer’s expiration, also aligning with compliance to local securities regulations.

TGU has assured that all basic guidelines for the process are offered transparently in the accompanying documents, including the Notice of Guaranteed Delivery.

Future Prospects and Financing Transaction

Accompanying this cash tender offer is a Financing Transaction, where TGU intends to issue New Notes through a separate document, exempt from the registration requirements of the Securities Act. The proceeds acquired from this financing are to be efficiently allocated to fund the tender offer itself alongside related expenses, which reflects TGU's initiative to manage its debt obligations effectively.

Advisory and Guidance

Deutsche Bank Securities Inc. has been appointed as the Dealer Manager for the offer while Morrow Sodali International LLC will serve as the information and tender agent. Stakeholders and bondholders wishing for further insights or additional copies of the offer documents may contact the designated agent directly.

In conclusion, Trinidad Generation Unlimited’s tender offer constitutes a crucial maneuver in its financial management strategy, providing an advantageous opportunity for bondholders while positioning the company to optimize its financial structure. Stakeholders are encouraged to review the offer documents closely and consult financial advisors to understand the implications fully and to make informed decisions regarding their investments.

For further details, individuals can visit TGU's dedicated tender offer website or contact the Dealer Manager for tailored assistance.

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This article is intended solely for informational purposes and is not a solicitation to purchase or offer any securities. Bondholders should make their own decisions based on comprehensive evaluations of the documents provided and their financial circumstances.