#Senior Secured Notes #Luxembourg #Tierra Mojada #Due 2040 #Zapotlanejo

Tierra Mojada Luxembourg II S.à r.l. Initiates Consent Solicitation

Tierra Mojada Luxembourg II S.à r.l., previously known as FEL Energy VI S.à r.l., has made a significant announcement regarding the commencement of a consent solicitation concerning its 5.750% Senior Secured Notes that are due in 2040. This move is part of a strategy to amend a crucial contractual service agreement dated May 8, 2017, involving Ciclo Combinado Tierra Mojada, S de R.L. de C.V. and GE Vernova Global Services GmbH.

Purpose of the Consent Solicitation

The company's goal for this solicitation is to secure the necessary consents from the holders of its Senior Secured Notes to implement proposed changes that will enable the installation of a MeeFog Wet Compression System (MWCS) on the GE 7HA.02 gas turbines at their 874.5 MW CCGT power plant, which is located in Zapotlanejo, Jalisco, Mexico. These amendments are vital as they pertain to several sections of the existing service agreement, including liability, warranties, maintenance protocols, and performance guarantees.

The solicitation is detailed in a formal statement issued by the company and is conducted under the outlined terms. It is essential for holders of the Notes to understand the implications of the proposed changes and their rights within this process.

Timeline and Participation

The consent solicitation officially began today and will remain open until 5:00 PM New York City time on March 13, 2026, unless the company opts for an extension. Only those who hold the Notes as of the Record Date specified in the current statement are eligible to participate in this solicitation and vote on the proposed amendments.

For the amendments to take effect, written approval from over 50% of the Note holders and lenders involved in the associated Credit Agreement is required. This represents a concerted effort to ensure that sufficient support exists for the proposals, which are deemed crucial for the future operational effectiveness and efficiency of the facility.

Current Standing and Financials

As of the announcement date, the company has reported an outstanding debt of $200 million, with 22.42% of the combined exposure already agreeing to the proposed amendments. This indicates a positive initial response from a segment of the stakeholders involved, although the company is keen to secure wider support to satisfy the requisite conditions necessary for the changes to be implemented.

This consent solicitation features a cash consent fee for participants, adding further incentive for holders of the Notes to take part in this important decision-making process. The fee will be paid to those who submit their consents before the expiration time, acknowledging their contribution to this initiative.

Conclusion and Outlook

Tierra Mojada Luxembourg II S.à r.l. remains committed to ensuring transparency and engagement with its stakeholders during this solicitation process. As the deadline approaches, the company's stakeholders are encouraged to consider the benefits and implications of the proposed changes carefully. This initiative reflects the company's ongoing commitment to optimizing its operations while navigating the complexities of financial agreements effectively.

For further inquiries, potential participants can reach out to the designated solicitation agents or the information tabulation agent to clarify any doubts or seek additional information regarding the consent solicitation process. This proactive engagement is crucial as the company moves forward with its plans for sustainable growth and operational enhancement.