Bond Market News

Bharat Petroleum Corporation Limited (BPCL) has launched a consent solicitation on its 4.625% 2022s, 4% 2025s and 4.375% 2027s to amend certain terms for a proposed amalgamation of two subsidiaries. BPCL is in the process merging wholly-owned subsidiaries Bharat Oman Refineries and Bharat Gas Resources into the company. The consent solicitation which ends on March 30, asks bondholders to approve revisions to terms such that the amalgamations will not constitute an event of default, and to instruct the bond trustees to vote in favor of the proposals at the creditor meetings. 75% of favorable votes are required for the resolutions to be passed. Votes have to be submitted by the early deadline date of March 24, 2022 and where bondholders will receive a fee of $1 per $1,000 in principal for each of the 2022s, 2025s and 2027s. No fee will be paid if holders vote in favor after the early deadline.