Foundry JV Holdco LLC Completes Consent Process for Notes
Foundry JV Holdco LLC Completes Consent Solicitation
In a recent announcement, Foundry JV Holdco LLC, a Delaware limited liability company, reported the successful completion of its consent solicitation regarding its outstanding senior secured notes. This initiative was specifically aimed at amending the indentures that govern various series of these notes, which play a key role in the company’s financing strategy.
Details of the Consent Solicitation
The consent solicitation included four primary series of notes: the 5.900% Senior Secured Notes due 2030, 6.150% Senior Secured Notes due 2032, 5.875% Senior Secured Notes due 2034, and 6.250% Senior Secured Notes due 2035. In total, the consent process sought the agreement of noteholders for proposed amendments that would enhance the terms of these indentures.
Voting and Response
More than 50% of the holders across each series of notes opted to provide their consent, which was essential for the proposed amendments to proceed. This significant support highlights the confidence investors have in Foundry JV Holdco and its financial direction.
Implementation of Proposed Amendments
Upon receipt of sufficient consent, the company executed supplemental indentures for each series, allowing the proposed amendments to become effective. These changes to the indentures will provide Foundry JV Holdco more flexibility in managing its operations and finances while facilitating potential future investments.
Financial Implications
To encourage participation in the consent process, Foundry JV Holdco announced a consent fee of $1.00 for every $1,000 in principal amount of notes for which consents were provided before the expiration time. This fee exemplifies the company's commitment to shareholder value and active engagement with its investors.
Role of Financial Advisors
Two important players in this consent solicitation were BNP Paribas Securities Corp. and Wells Fargo Securities, who acted as solicitation agents. Their expertise in navigating complex financial arrangements was invaluable. D.F. King & Co., Inc. supported the process as the information and tabulation agent.
About Foundry JV Holdco LLC
Foundry JV Holdco LLC operates as part of a collaboration between Brookfield Infrastructure Partners L.P. and Intel Corporation. This partnership focuses on a significant manufacturing expansion at Intel's campus in Chandler, Arizona. Brookfield Infrastructure, through this partnership, holds a 49% interest in Arizona Fab LLC, which is instrumental in expanding semiconductor manufacturing capabilities.
Looking Ahead
The successful completion of this consent solicitation marks a pivotal moment for Foundry JV Holdco as it continues to build on partnerships and drive growth in the semiconductor industry. The restructuring of the financial agreements is anticipated to play a critical role in supporting ongoing and future projects that align with both Brookfield's and Intel's strategic objectives.
Future Considerations
As Foundry JV Holdco LLC moves forward, it will also continue to assess the broader market landscape and adjust its strategies accordingly. The semiconductor industry remains competitive and dynamic, and the company is poised to leverage its operational strengths to capitalize on upcoming opportunities.
Frequently Asked Questions
What was the purpose of the consent solicitation?
The consent solicitation aimed to secure approvals for proposed amendments to the indentures governing various series of senior secured notes.
Who were the financial advisors involved in this process?
BNP Paribas Securities Corp. and Wells Fargo Securities acted as solicitation agents during the consent solicitation.
How much was the consent fee for noteholders?
The consent fee was set at $1.00 per $1,000 of principal amount for which consents were delivered and accepted by the company.
What is the significance of the amendments to the indentures?
The amendments to the indentures are intended to enhance the company’s financial flexibility and support future investment opportunities.
What percentage of noteholders consented to the proposal?
Over 50% of the holders of each series of notes provided their consent for the proposed amendments.
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