Hunt Oil Company of Peru Extends Tender Offer Deadlines to Benefit Investors

Hunt Oil Company of Peru L.L.C. Extends Tender Offer Deadlines

In a recent announcement, Hunt Oil Company of Peru L.L.C. (HOCP) revealed that it has decided to extend the expiration time related to its tender offers for certain senior notes. This strategic move aims to offer investors additional time to participate in these offers, which have drawn considerable attention.

Details of the Tender Offers

The company is focusing on its outstanding 6.375% Trust Enhanced Senior Notes that mature in 2028 and its 8.550% Trust Enhanced Senior Notes due in 2033. The new expiration time for these offers is set for 8:00 AM Eastern Time (7:00 AM Lima Time) on April 15, 2025. This extension allows noteholders more leeway to consider and act on the offers, which are geared towards cash buyouts of the notes mentioned.

The initial offers were made as part of the Offer to Purchase dated March 31, 2025, which outlines critical terms and conditions. These offers will result in payments for accepted notes on the settlement date of April 21, 2025, which will occur four business days after the expiration time.

Understanding the Financial Implications

The tender process requires that noteholders validate their tenders before the defined withdrawal date, which coincides with the expiration time. As of April 8, 2025, data showed significant participation in the tender offers, with 52.99% of the 2028 Notes and 64.02% of the 2033 Notes having been tendered without withdrawal. This indicates strong interest from investors in capitalizing on the offers.

Holders of the 2028 Notes can expect a proposed consideration of $1,025 for each $1,000 of original principal amount, factoring in the scaling adjustments due to prior amortization. In contrast, considerations for the 2033 Notes reflect similar terms, ensuring competitive incentives remain in play for investors.

Company Background and Market Position

HOCP plays a significant role within the Camisea Consortium, linked to some of the largest natural gas production entities in Peru. Holding a 25.2% interest in lucrative license contracts, HOCP benefits from the expansive Camisea Fields, particularly Blocks 88 and 56. These blocks represent the most substantial reserves of natural gas in Peru.

The strategic positioning of HOCP within this consortium strengthens its market presence and operational capacity, further enhancing its appeal to investors, particularly in the current tender offerings.

Remaining Conditions and Further Information

Besides the alterations to the expiration time, all other terms and conditions of the offers remain unchanged, maintaining consistency for participants. For further insights or to examine the specifics of the tender process, stakeholders are encouraged to connect directly with the designated dealer managers.

Engagements with BofA Securities, Citigroup, Credicorp Capital, and J.P. Morgan Securities provide additional avenues for inquiries regarding this tender offer extension, reinforcing the company's commitment to transparent investor communication.

In summary, Hunt Oil Company's decision to prolong the tender offer deadlines presents a significant opportunity for investors involved in its financial instruments. By extending this timeline, HOCP allows for a more comprehensive evaluation and engagement with their outstanding debt instruments, illustrating a robust gesture of goodwill toward market stakeholders. As the deadline approaches, all eyes will be on the participation rates and how the market responds to these extended offers.