Lightstream Resources Ltd. entered into a restructuring support agreement with members of its ad hoc committee of secured noteholders who hold about 91.5% of the US$650 million 9.875% second-lien secured notes due June 15, 2019.
There is a proposed recapitalization of the secured notes; the US$254 million of 8.625% unsecured notes due Feb. 1, 2020; the common shares; and the revolving credit facility.
The proposed recapitalization will reduce the overall debt by about US$904 million, or about CA$1.175 billion in principal, and will reduce cash interest payments by more than US$86.1 million per year, or about CA$112 million per year, Lightstream said.
The proposed recapitalization is intended to be implemented through a corporate plan of arrangement under the Canada Business Corporations Act, with proceedings before the Court of Queen's Bench of Alberta. As part of the proceedings, Lightstream said it will seek a preliminary interim order.
The completion of the recapitalization is subject to several conditions, including that all required stakeholder, third-party, regulatory, court and stock exchange approvals, consents or waivers must have been received.
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