#Peru #Lima #Senior Notes #Tender Offer #Kallpa Generación

Kallpa Generación S.A. Launches Tender Offer for Senior Notes

Kallpa Generación S.A., a Peruvian sociedad anónima, has announced the start of a cash tender offer for its outstanding 4.875% Senior Notes, which are set to mature in 2026. The company officially declared this offer on January 21, 2025, signaling a strategic move in its financial operations.

Overview of the Offer

The cash tender offer is intended to purchase any and all of the outstanding Senior Notes, totaling $350 million. The consideration for these notes is fixed at $1,001.50 for every $1,000 principal. This offer is noteworthy as it provides holders of the notes an opportunity to liquidate their investments prior to the maturity date.

Conditions of the Offer

The tender offer is contingent upon certain conditions being met, as detailed in the formal Offer to Purchase issued by the company. Importantly, the offer is not reliant on a minimum number of notes being tendered, showcasing Kallpa Generación's confidence amid changing market conditions. As per the company's discretion, they reserve the right to amend or terminate the offer at any time.

Key Dates to Remember

The cash tender offer is scheduled to end at 5:00 PM New York City time on January 27, 2025. Holders interested in this opportunity must ensure their tender is submitted or a properly executed Notice of Guaranteed Delivery is delivered before this expiration date. A settlement date is projected around January 30, 2025, when payments for validly tendered notes will occur, inclusive of accrued interest.

Withdrawal Rights

Notably, there is a provision for holders to withdraw their notes prior to the expiration and under certain conditions post the set expiration. Withdrawals can typically occur until the 10th business day following the offer’s commencement if extended, and thereafter until 60 days following the commencement if the offer remains uncompleted.

Financing Transaction

Concurrently with the tender offer, Kallpa Generación is planning a financing transaction involving the issuance of new senior notes exempt from SEC registration requirements. The proceeds from this financing will be utilized to consummate the tender offer as well as cover related expenses. The company aims to reflect a well-structured balance between debt management and growth initiatives.

Redemption Prospects

In line with the offer, Kallpa Generación has also initiated a conditional notice of redemption for any notes not acquired through the tender offer. The redemption will take into account the accrued net proceeds from the financing transaction.

This intricate maneuver by Kallpa Generación highlights its proactive approach to managing its debt and reinforces its financial flexibility. The company emphasizes that all communications regarding these operations, including details about the Offer and Redemption processes, are intended to keep investors well-informed, thereby supporting an informed decision-making process.

Conclusion

As the expiration date for the tender offer approaches, market watchers and stakeholders will keenly observe the movement of the company’s notes in response to this strategic financial initiative. Investors are highly encouraged to scrutinize the terms outlined in the Offer to Purchase and the Notice of Guaranteed Delivery for a comprehensive understanding of the implications of this tender offer.

This announcement marks a significant step for Kallpa Generación S.A. in aligning its capital structure with its ongoing business strategies, aiming for enhanced financial stability and operational effectiveness moving forward.