Oil Casualty Insurance, Ltd. Receives Requisite Consents Pursuant to its Consent Solicitation Related to its 8.00% Deferrable Subordinated Debentures Due September 15, 2034
HAMILTON, Bermuda, Sept. 30, 2015 /PRNewswire/ -- Oil Casualty Insurance, Ltd. ("OCIL") announced today that it has received the requisite consents from holders of its 8.00% Deferrable Subordinated Debentures Due September 15, 2034 (the "Notes") to certain amendments to the documents governing the Notes. The consents were obtained in accordance with OCIL's consent solicitation, which commenced September 22, 2015 and expired at 5:00 p.m., New York City time, on Tuesday, September 29, 2015.
OCIL and Oil Casualty Investment Corporation Ltd., as subsidiary guarantor with respect to the Notes, will enter into a supplemental indenture with The Bank of New York Mellon, as trustee, and also will execute and deliver amendments and restatements of the Notes and the subsidiary guarantee with respect to the Notes to effect the amendments, whereupon the amendments will be binding upon all holders of the Notes.
The amendments include, among other things, (i) amendments designed to allow OCIL to implement a strategic plan recently adopted by its board of directors, the goal of which is to allow OCIL to diversify its policy issuance into adjacent industries and an expanded set of non-energy customers, thereby allowing OCIL to reduce volatility (through reducing the likelihood of correlation of losses) and providing OCIL with growth opportunities; (ii) amendments that will permit the Company to terminate its existing shareholders' agreement (in connection with the termination of the Company's shareholders' agreement, most of the substantive provisions of such agreement will be incorporated into the Company's bye-laws, and the documents governing the Notes will include certain restrictions with respect to the Company's bye-laws); and (iii) the addition of an interest rate adjustment period tied to certain events with respect to the rating assigned to the Notes, during the continuation of which the Notes would bear interest at an interest rate per annum equal to 8.50%.
Under the terms of the consent solicitation, OCIL will pay $3.75 for each $1,000 in principal amount of Notes with respect to which a consent was received and accepted (and not validly revoked) prior to the expiration time of the consent solicitation.
Barclays Capital Inc. acted as solicitation agent for the consent solicitation. The settlement agent and the information agent for the consent solicitation was MacKenzie Partners, Inc.
OCIL is a provider of excess property and liability insurance to energy companies. OCIL also writes casualty and property treaty reinsurance. Energy operations insured by OCIL include exploration and production, refining and marketing, pipelines, petrochemicals, electric/gas utilities, mining and integrated energy companies. Domiciled in Bermuda, OCIL has served the industry for over twenty-eight years.
CONTACT: Simon Coope, 212-929-5085, [email protected]
SOURCE Oil Casualty Insurance, Ltd.
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