Bangkok: EA adjusts its plan to extend the maturity of its debt instruments to 7 years from the original 11 years, along with adding better financial benefits and increasing the interest rate for bondholders in each series by another 0.5% per year for long-term financial sustainability. The SEC warns bondholders to attend the meeting and study the information carefully before voting on June 20.
According to Thai News Agency, Mr. Vasu Klomkliang, Chief Financial Officer of Energy Absolute Public Company Limited (EA), revealed that the company will adjust the negotiation plan for bondholders to be held on June 20th, totaling 14 issues. The adjustments include reducing the extension of the debt instrument maturity from 11 years to only 7 years. This change brings the weighted average tenor down from 7 years to 4.9 years. EA is offering better financial benefits to bondholders in each issue who support and approve the plan, a decision influenced by direct suggestions from bondholders, including retail investors, funds, institutions, and large investors. The interest rate for bondholders in each issue will be increased by 0.5% per year, starting from the date of approval, and bondholders will have the right to receive some of the principal back in advance according to the conditions specified in each issue.
The Company initially proposed a preliminary plan to postpone debt repayment for an average of 11 years to accommodate the maturity of some debentures. This proposal allowed stakeholders to express their opinions. After considering the feedback from all groups of debenture holders, the Company adjusted the plan to improve duration, interest, and additional benefits. EA has assured debenture holders that if there is a dividend payment to common shareholders, each debenture holder approving the plan will receive the same amount of principal back through a specified mechanism. The revised plan was discussed with financial partners, who agreed on its balanced and sustainable approach.
The SEC has asked the 14 EA bondholders to exercise their rights, study the information, and seek complete information for making a decision at the bondholder meeting on June 20, 2025, via an electronic meeting (E-meeting). The meeting will separate the quorum counting according to all bond series issued simultaneously, divided into 7 groups, but will count the votes of all bondholders attending the meeting and voting on agendas 2 to 4. If the bondholder meeting of each bond group approves the waiver, the joint resolution of the bondholders will be counted on agenda 1.
The meeting agenda includes:
(1) Relaxation to count votes of the joint resolution of all debenture holders who attended and voted, effective immediately for Agenda Items 2 to 4 of the 1/2025 debenture holders’ meeting, including the counting of quorum by debenture group;
(2) Relaxation to close the debenture holder register for a period of less than 14 days before the meeting, which shall not be considered non-compliance with terms and conditions;
(3) Extension of the redemption period of all 14 debenture series for another 11 years; increase the interest rate by 0.50 percent per year for the extended period; and divide principal repayment into 11 installments annually, with the final installment on the extended redemption date;
(4) Relaxation of the issuer’s proposal to adjust the bond repayment structure by extending the bond redemption period, granting a Call Option, adjusting the bond interest rate, and dividing repayment of some bond principal, not considered a default under the terms and conditions.
The SEC requires the bondholder representative to analyze the advantages, disadvantages, benefits, and impacts that bondholders will receive from approving or disapproving each option, along with supporting reasons and the bondholder representative’s opinion. Bondholders are urged to study the information carefully and exercise their rights to protect their interests.