Foundry JV Holdco LLC Initiates Consent Solicitation for Notes
Foundry JV Holdco LLC Begins Consent Solicitation Process
Foundry JV Holdco LLC, a limited liability company based in Delaware, has announced its initiation of a consent solicitation concerning its 5.900% Senior Secured Notes due 2030, among others. This solicitation is aimed at holders of various series of outstanding Senior Secured Notes, which include rates ranging from 5.875% to 6.400% and due between 2030 and 2038. The company is seeking to amend specific terms and conditions of the indentures governing these notes to facilitate certain modifications vital for its financial restructuring.
Proposed Amendments Overview
The consent solicitation is pivotal as it aims to amend several provisions within the governing indentures. These changes are necessary to enhance the company's standing with rating agencies, which could lead to improved assessments regarding its fiscal health. The company has detailed these proposed amendments in a Consent Solicitation Statement. Among the key changes are amendments to the definitions pertaining to Total Net Debt and Events of Default, which will allow for greater flexibility in managing financial obligations.
Details of the Amendments
The proposed amendments chiefly involve three significant areas. First, a revision to the definition of Total Net Debt, which will permit the inclusion of suspended distributions starting from a set date, aimed at increasing the available proceeds to holders. Secondly, adjustments are made concerning the Events of Default linked specifically to Intel Member, limiting its applicability to cases where Intel Corporation is also in breach of relevant agreements.
Financial Flexibility through Debt Service Reserve Accounts
Another significant amendment gives the company the ability to create a Debt Service Reserve Account voluntarily at any time. This flexibility is crucial as it allows the company to proactively manage its liquidity, particularly during periods of financial uncertainty. The existing mandate for opening such accounts under specific conditions remains unchanged, ensuring that the company is equipped to tackle potential fiscal challenges.
Timeline for Consent Solicitation and Incentives
The consent solicitation is scheduled to close by 5:00 p.m. New York City time on a specified date. After this cutoff, holders' consents cannot be revoked, making it imperative for interested parties to act promptly. In exchange for their consent towards the proposed changes, the company is offering a consent fee of $1.00 per $1,000 of the principal amount of notes held. This incentive underscores the company's commitment to gaining widespread support for its proposed amendments.
Involvement of Financial Advisors
To navigate the complexities of this process, Foundry JV Holdco LLC has engaged BNP Paribas Securities Corp. and Wells Fargo Securities, LLC as solicitation agents. D.F. King & Co., Inc. has been designated as the information and tabulation agent. These partnerships play a critical role in effectively communicating with noteholders and ensuring the smooth administration of the consent solicitation process.
About Foundry JV Holdco LLC
The Company operates as a joint venture with Brookfield Infrastructure Partners L.P. This collaboration has been pivotal in supporting Intel's manufacturing expansion initiatives. The partnership has resulted in significant developments, including two semiconductor wafer fabrication facilities that are crucial in addressing the rising demand in the semiconductor industry.
Frequently Asked Questions
What is the purpose of the consent solicitation by Foundry JV Holdco LLC?
The consent solicitation aims to amend specific provisions of the indentures governing the company's outstanding senior secured notes to improve rating agency evaluations and financial management.
What experiences does Foundry JV Holdco LLC have in the industry?
Foundry JV Holdco LLC has a partnership with Brookfield Infrastructure Partners and Intel, focusing on significant manufacturing expansions in the semiconductor sector.
What changes are being proposed in the indentures?
Proposed amendments include adjustments to definitions concerning Total Net Debt, Events of Default, and the establishment of a Debt Service Reserve Account.
When does the consent solicitation expire?
The consent solicitation is set to close at 5:00 p.m. New York City time on a specified date, after which holders’ consents cannot be revoked.
Who can holders contact for more information regarding the consent solicitation?
Holders can reach out to BNP Paribas or Wells Fargo for queries on the solicitation, and D.F. King can assist with consent processing and document requests.
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