SAN ANTONIO, June 10, 2016 /PRNewswire/ -- SA Energy Acquisition Public Facility Corporation (the "Corporation") announced today that it is soliciting consents from holders of its Gas Supply Revenue Bonds, Series 2007 (the "Bonds") to amendments to supporting documents on terms and subject to the conditions set forth in its Consent Solicitation Statement dated June 10, 2016 and accompanying Consent Form (collectively, the "Consent Solicitation Documents").
As more fully described in the Consent Solicitation Documents, the proposed amendments, if effected, will:
- Replace a collateralized repurchase agreement with DEPFA Bank plc that is held in the Bond Fund for the Bonds with an initially unsecured investment agreement to be provided by J. Aron & Company and guaranteed by The Goldman Sachs Group, Inc. ("GSG").
- Amend the prepaid natural gas sales agreement between the Corporation and J. Aron to eliminate a seller default if GSG fails to maintain an investment grade credit rating from S&P or Moody's and then fails to provide specified credit support upon request from the Corporation.
The amendments are proposed to improve the credit ratings currently assigned to the Bonds by Moody's (while maintaining the ratings currently assigned to the Bonds by S&P and Fitch) and to reduce reliance on the performance of DEPFA. The proposed amendments will become effective, if at all, only upon satisfaction of certain conditions, including, but not limited to, (a) payment of a consent fee described in the Consent Solicitation Statement to consenting bondholders and (b) confirmation that the Bonds will be rated by Moody's, S&P, and Fitch at least as well as GSG.
Execution of the proposed amendments requires the consent of the registered owners of a majority in principal amount of the Bonds outstanding or their proxies. As of June 1, 2016, $354,605,000 principal amount of Bonds were outstanding.
The consent solicitation will expire at 10:30 a.m., New York City time, on June 30, 2016, unless amended or terminated (such date and time, the "Expiration Date"). Only holders of record of the Bonds as of 5:00 p.m. New York City time, on June 9, 2016, are eligible to deliver consents to the proposed amendments in the consent solicitation.
The Corporation has retained Jefferies LLC to act as Solicitation Agent in connection with the consent solicitation. Questions regarding the consent solicitation may be directed to the Solicitation Agent at (800) 567-8567 (toll-free) or (404) 264-5057 (collect). Copies of the Consent Solicitation Documents as well as assistance with voting and delivery of consents may be directed to D.F. King & Co., Inc., the Information Agent and Tabulation Agent for the consent solicitation, at (866) 521-4219 (toll-free) or (212) 269-5550 (collect) or by email at firstname.lastname@example.org.
This announcement is for informational purposes only and is not a solicitation of consents with respect to any securities. This announcement shall not constitute an offer to buy or a solicitation of an offer to sell any Bonds. The consent solicitation is being made solely by, and on the terms and subject to the conditions set forth in, the Consent Documents and is not being made in any jurisdiction in which it is unlawful to solicit of grant consents.
The Corporation is a public non-profit corporation created to acquire energy supplies for the City Public Service Board (d/b/a CPS Energy) of San Antonio, Texas, the Corporation's sponsor.
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SOURCE SA Energy Acquisition Public Facility Corporation