This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Road King Revises Consent Solicitation to Ease Liquidity Pressure and Avoid Default
July 22, 2025
Distressed developer Road King Infrastructure initiated a new round of consent solicitations for its five senior notes due between 2028 and 2030 (March 2028s, September 2028s, March 2029s, July 2029s and January 2030s), following feedback from certain minority noteholders. This comes after earlier proposals from 20 June 2025 had been withdrawn to accommodate requested clarifications and improvements. Key updated terms include:
- PIK (Pay-In-Kind) Interest: Interest until mid‑2026 will be PIK semi‑annually at each series’ coupon rate (6.7% for the March 2028s, 5.9% for the September 2028s, 6.0% for the March 2029s, 5.2% for the July 2029s and 5.125% for the January 2030s)
- Asset proceeds usage: Up to 60% (previously 50%) of proceeds from specified asset sales/financings (primarily Indonesia toll roads) will be deposited toward interest and solicitation fees.
- Strengthened covenants: Tighter restrictions on voluntary debt paydowns, credit enhancements of offshore debt, and pledging equity unless tied to specified asset financings.
- No changes to mandatory repurchase/redemption or default triggers from existing terms.
- Termination of the proposed amendments support agreement (PASA) dated 20 June 2025 – no new agreement is proposed.
Road King’s interest payments due (in July and September 2025) on the July 2029s and January 2030s respectively must be resolved before a 30‑day grace period expires. If approved, the solicitation is expected to ease liquidity pressure, allowing the company to fund upcoming interest payments while seeking to monetize assets. Failure to pass the resolutions could likely force broader restructuring.
Road King’s dollar bonds were trading stable with its 6.7% 2028s at 28.9 cents on the dollar.
For more details, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.