PetroLogistics extends expiry date of consent solicitation

07 Jul '14

2 min read

PetroLogistics LP announced that it and PetroLogistics Finance Corp. have extended the expiration time of the previously announced solicitation of consents (the "Consent Solicitation") from holders of the Issuers' outstanding 6.25% Senior Notes due 2020 (the "Notes") to approve amendments (the "Proposed Amendments") to the indenture relating to the Notes to 5:00 p.m., New York City time, on July 9, 2014 (the "New Expiration Time"). As set forth in the Consent Solicitation Statement dated June 24, 2014, as of 5:00 p.m., New York City time, on July 2, 2014 Holders of the Notes are no longer able to withdraw their consents, whether given before or after that time.

The consent payment for the Consent Solicitation is also being amended to provide that Flint Hills Resources, LLC ("Flint Hills") will make a total cash payment (the "Total Consent Payment") of $1,825,000 to holders of Notes (the "Consenting Holders") whose consents have been validly delivered by the New Expiration Time and were not validly revoked before 5:00 p.m., New York City time, on July 2, 2014 (the "Validly Consenting Notes").

The Total Consent Payment will be paid pro rata on the aggregate principal amount of the Validly Consenting Notes delivered by Consenting Holders (the "Pro Rata Consent Payment"). If all outstanding Notes are Validly Consenting Notes, each Consenting Holder will receive the minimum consent payment of $5.00 per $1,000 aggregate principal amount of Validly Consenting Notes.

The Supplemental Indenture containing the Proposed Amendments will not become operative until the consummation of the acquisition of the Company by Flint Hills (the "Merger").

All other terms and conditions of the Consent Solicitation remain as set forth in the Consent Solicitation Statement, the Consent Solicitation Supplement dated July 2, 2014 and the accompanying consent letter.

About PetroLogistics

PetroLogistics is a major producer of propylene with operations in the vicinity of the Houston Ship Channel. The company owns and operates the only propane dehydrogenation facility in the US, and its plant is among the largest of its kind in the world. The facility began operations in 2010 and has an annual production capacity of approximately 1.45 billion pounds. Propylene is one of the basic petrochemical building blocks that is used in the manufacture of a variety of end products, including paints, coatings, building materials, clothing, automotive parts, packaging and a range of other consumer and industrial products. The facility employs about 100 people.

PetroLogistics

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