Foundry JV Holdco LLC Announces Launch of Consent Solicitation to Holders of its Outstanding Senior Secured Notes
Foundry JV Holdco has launched a consent solicitation for amendments to its outstanding Senior Secured Notes, including 5.900% due 2030, 6.150% due 2032, 5.875% due 2034, 6.250% due 2035, and 6.400% due 2038. The proposed amendments aim to improve rating agency assessments and include changes to:
1. Total Net Debt definition regarding suspended distributions after January 25, 2038
2. Events of Default related to Intel Member's bankruptcy conditions
3. Provisions for voluntary establishment of a Debt Service Reserve Account
The solicitation expires on January 17, 2025, at 5:00 p.m. NYC time. Consenting holders will receive $1.00 per $1,000 in principal amount of Notes. The consent requires approval from holders of more than 50% of each series' aggregate principal amount and execution of a Note Purchase Agreement amendment.
Foundry JV Holdco ha avviato una richiesta di consenso per modifiche alle sue Senior Secured Notes in circolazione, inclusi il 5,900% che scade nel 2030, il 6,150% che scade nel 2032, il 5,875% che scade nel 2034, il 6,250% che scade nel 2035 e il 6,400% che scade nel 2038. Le modifiche proposte mirano a migliorare le valutazioni delle agenzie di rating e includono cambiamenti a:
1. Definizione di Debito Netto Totale riguardante le distribuzioni sospese dopo il 25 gennaio 2038
2. Eventi di Inadempimento relativi alle condizioni di fallimento di Intel Member
3. Disposizioni per l'istituzione volontaria di un Conto di Riserva per il Servizio del Debito
La richiesta scade il 17 gennaio 2025, alle 17:00 ora di New York. I possessori acconsententi riceveranno $1,00 per ogni $1.000 di importo principale delle Notes. Il consenso richiede l'approvazione da parte di possessori di oltre il 50% dell'importo principale aggregato di ciascuna serie e l'esecuzione di un'emendamento dell'Accordo di Acquisto di Notes.
Foundry JV Holdco ha lanzado una solicitud de consentimiento para enmiendas a sus Senior Secured Notes pendientes, incluyendo el 5.900% que vence en 2030, el 6.150% que vence en 2032, el 5.875% que vence en 2034, el 6.250% que vence en 2035 y el 6.400% que vence en 2038. Las enmiendas propuestas tienen como objetivo mejorar las evaluaciones de las agencias de calificación e incluirán cambios a:
1. Definición de Deuda Neta Total respecto a distribuciones suspendidas después del 25 de enero de 2038
2. Eventos de Incumplimiento relacionados con las condiciones de quiebra de Intel Member
3. Disposiciones para el establecimiento voluntario de una Cuenta de Reserva para el Servicio de la Deuda
La solicitud expira el 17 de enero de 2025, a las 5:00 p.m. hora de Nueva York. Los tenedores que consientan recibirán $1.00 por cada $1,000 en monto principal de Notes. El consentimiento requiere aprobación de los tenedores que representen más del 50% del monto principal agregado de cada serie y la ejecución de un enmienda al Acuerdo de Compra de Notes.
Foundry JV Holdco는 2030년에 만기가 도래하는 5.900%, 2032년에 만기가 도래하는 6.150%, 2034년에 만기가 도래하는 5.875%, 2035년에 만기가 도래하는 6.250% 및 2038년에 만기가 도래하는 6.400%를 포함하여 미결 상태의 Senior Secured Notes에 대한 개정 승인을 요청했습니다. 제안된 개정안은 신용평가 기관의 평가를 개선하는 것을 목표로 하며 다음과 같은 변경 사항을 포함합니다:
1. 2038년 1월 25일 이후 중단된 배당금에 관한 총 순부채 정의
2. Intel Member의 파산 조건과 관련된 채무 불이행 사건
3. 채무 서비스 준비금 계좌의 자발적 설정에 대한 조항
이 요청은 2025년 1월 17일 오후 5시(뉴욕 시간)에 만료됩니다. 동의한 채권자는 $1.00당 $1,000의 원금에 대한 보상을 받게 됩니다. 동의는 각 시리즈의 총 원금의 50% 이상을 보유한 채권자의 승인을 요구하며, Notes 구매 계약의 개정 실행이 필요합니다.
Foundry JV Holdco a lancé une solicitation de consentement pour des modifications de ses Senior Secured Notes en circulation, y compris le 5,900% échéant en 2030, le 6,150% échéant en 2032, le 5,875% échéant en 2034, le 6,250% échéant en 2035 et le 6,400% échéant en 2038. Les modifications proposées visent à améliorer les évaluations des agences de notation et comprennent des changements concernant :
1. Définition de la Dette Nette Totale concernant les distributions suspendues après le 25 janvier 2038
2. Événements de Défaut liés aux conditions de faillite d'Intel Member
3. Dispositions pour l'établissement volontaire d'un Compte de Réserve pour le Service de la Dette
La sollicitation expire le 17 janvier 2025 à 17h00, heure de New York. Les détenteurs consentants recevront 1,00 $ pour chaque 1 000 $ de montant principal des Notes. Le consentement nécessite l'approbation des détenteurs représentant plus de 50 % du montant principal agrégé de chaque série et l'exécution d'un amendement à l'Accord d'Achat de Notes.
Foundry JV Holdco hat eine Zustimmung zur Änderung seiner ausstehenden Senior Secured Notes eingeleitet, einschließlich 5,900% fällig 2030, 6,150% fällig 2032, 5,875% fällig 2034, 6,250% fällig 2035 und 6,400% fällig 2038. Die vorgeschlagenen Änderungen zielen darauf ab, die Bewertungen durch Rating-Agenturen zu verbessern und enthalten Änderungen zu:
1. Definition der Gesamt-Netto-Verschuldung bezüglich aufgeschobener Ausschüttungen nach dem 25. Januar 2038
2. Ereignisse des Ausfalls im Zusammenhang mit den Insolvenzbedingungen des Intel-Mitglieds
3. Bestimmungen zur freiwilligen Einrichtung eines Schuldendienstreservekontos
Die Anfrage läuft am 17. Januar 2025 um 17:00 Uhr New Yorker Zeit ab. Zustimmende Inhaber erhalten $1,00 pro $1.000 des Nennbetrags der Notes. Die Zustimmung erfordert die Genehmigung von Inhabern von mehr als 50% des Gesamtbetrags der jeweiligen Serie und die Ausführung einer Änderung des Kaufvertrags für Notes.
- Company is taking proactive steps to improve rating agency assessments
- Proposed amendments could increase proceeds available to noteholders
- Intel's guarantee of obligations remains unchanged
- Consent fee of $1.00 per $1,000 is relatively modest
- Short window for consent solicitation (until January 17, 2025)
- Changes to Events of Default conditions could potentially affect creditor protections
Insights
This consent solicitation represents a strategic move to enhance Foundry JV Holdco's debt structure and rating agency profile. The three key amendments proposed are technically complex but strategically important: 1) modification of Total Net Debt calculation post-2038, 2) refinement of Intel Member default conditions and 3) flexibility in establishing Debt Service Reserve Accounts.
The modest consent fee of
The requirement for
The proposed amendments reflect sophisticated liability management and strategic planning by Foundry JV Holdco. The timing, just ahead of 2038 call considerations, suggests proactive management of capital structure. The changes particularly around the Intel relationship demonstrate careful balancing of operational flexibility with creditor protections.
For investors, these amendments offer subtle but meaningful improvements:
- Enhanced clarity on distribution mechanics post-2038
- More precise default triggers regarding Intel's involvement
- Greater flexibility in liquidity management through voluntary DSRA establishment
The parallel amendment process across different debt instruments (notes, private placement, credit agreement) shows coordinated liability management. While the consent fee is minimal, the long-term benefits of improved rating agency assessment could translate into material financing cost savings.
AMENDMENT & CONSENT
The Company is pursuing the Consent Solicitation to adopt the Proposed Amendments to certain terms and provisions of the Indentures. The Proposed Amendments are primarily being sought to address certain rating agency considerations and thereby improve certain rating agency assessments of the Company. The terms and conditions of the Consent Solicitation are set forth in a Consent Solicitation Statement, dated as of the date hereof (the "Statement"). The Proposed Amendments to the Indentures would amend the following:
(i) | Section 1.1 (definition of Total Net Debt) to allow suspended distributions to be contemplated in such definition for periods of determination on or after January 25, 2038 following receipt of an Intel Call Notice. The proposed amendments being sought in the NPA Amendment (as defined below) will also amend the definition of "RP Conditions" (as defined in that certain Note Purchase Agreement dated as of April 27, 2023) to introduce a distribution block on or after January 25, 2038 (similarly triggered by receipt of an Intel Call Notice). This would increase the proceeds available to Holders. For clarity, the definition and calculation of Total Net Debt applies only to the calculation of the Unlevered Call Price Condition; |
(ii) | Section 6.1(e) (Events of Default) solely as it relates to Intel Member, and specifically provide that such Event of Default (which addresses certain bankruptcy and insolvency events) would only apply to Intel Member if Intel Corporation ("Intel") or one or more of its relevant Affiliates is in default under one or more Material Project Documents and the Intel Guaranty beyond any grace or cure periods. For the avoidance of doubt, Section 6.1(e) of the Indentures remains unchanged as it relates to certain bankruptcy and insolvency events of certain other entities, including Intel. Any bankruptcy or insolvency of Intel will remain an Event of Default, without amendment. Given the Intel Guaranty provides an irrevocable and unconditional guarantee of all of Intel Member's obligations under the JV Agreement, this change is being pursued to link the trigger for a bankruptcy and insolvency event of default of Intel Member with a concurrent failure by Intel to perform its obligations under the Material Project Documents and the Intel Guaranty; and |
(iii) | Section 4.10(c) (Deposit Accounts) to provide the Company with the ability to voluntarily establish a Debt Service Reserve Account at any time, including when it is not otherwise required by the terms of the Indentures. Section 4.10(c) already requires the Company to open and fund a Debt Service Reserve Account on a mandatory basis upon the occurrence of certain trigger conditions, namely the Projected Debt Service Coverage Ratio falling below 1.15:1.00 upon the incurrence of Incremental Indebtedness. The proposed change in Section 4.10(c) would not amend the existing mandatory requirement. |
Defined terms used and not defined herein have the meanings set forth in the Indentures.
The Consent Solicitation will expire at 5:00 p.m.,
The payment of the Consent Fee is conditioned upon satisfaction or waiver of the Conditions (as defined in the Statement) to the Consent Solicitation as described therein, including, among others, (i) the receipt of consents of holders of more than
BNP Paribas Securities Corp. ("BNP Paribas") and Wells Fargo Securities, LLC ("Wells Fargo") are serving as solicitation agents in connection with the Consent Solicitation. D.F. King & Co., Inc. ("D.F. King") is serving as the information agent and tabulation agent in connection with the Consent Solicitation. Questions regarding the terms of the Consent Solicitation may be directed to BNP Paribas at (212) 841-3059 and (888) 210-4358 (toll free) and Wells Fargo at (704) 410-4235 and (866) 309-6316 (toll free), respectively. Questions or requests for assistance in completing and delivering a consent or requests for copies of the Statement may be directed to D.F. King at (800) 549-6697 (toll free) or by email to foundry@dfking.com.
This press release does not constitute an offer to sell or an offer to purchase, or a solicitation of an offer to purchase or sell, any security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, purchase or sale would be unlawful. None of the Company, the solicitation agents or the information and tabulation agent, makes any recommendation as to whether holders should deliver consents to the Proposed Amendments. Each holder must make its own decision as to whether or not to deliver consents to the Proposed Amendments.
ABOUT FOUNDRY JV HOLDCO LLC
The Company, which is indirectly owned by Brookfield Infrastructure Partners L.P. (NYSE: BIP, TSX: BIP.UN), together with its institutional partners (collectively, "Brookfield Infrastructure"), was formed in connection with a partnership between Brookfield Infrastructure and Intel to jointly invest in Intel's previously announced manufacturing expansion at its Ocotillo campus in
FORWARD LOOKING STATEMENTS
This news release may contain certain statements that are, or may be deemed to be, "forward-looking statements." All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things: (i) statements regarding the Company and Arizona Fab, including statements regarding Arizona Fab's ability to issue dividends or make payments; (ii) statements regarding the financial condition of the Company and Arizona Fab; (iii) statements regarding any financing transactions or arrangements; (iv) statements regarding the construction timeline and status of the Fabs; (v) statements regarding any semiconductor wafer purchase, sale or other agreement to be entered into or performed substantially in the future, including the anticipated amount and timing of any revenues to be received therefrom, and statements regarding the amounts of total semiconductor wafer production capacities that are, or may become subject to such agreements; (vi) statements regarding counterparties to, or guarantors under, the Company's or Arizona Fab's contracts, including the Material Project Documents; (vii) statements regarding the Company's, Intel's or Arizona Fab's business strategy, strengths, business and operation plans or any other plans, forecasts, projections or objectives, including anticipated revenues and capital expenditures, any or all of which are subject to change; (viii) statements regarding legislative, governmental, regulatory, administrative or other public body actions, requirements, permits, investigations, proceedings or decisions; and (ix) any other statements that relate to non-historical or future information.
These forward-looking statements are often identified by the use of terms and phrases such as "achieve," "anticipate," "believe," "contemplate," "develop," "estimate," "expect," "forecast," "plan," "potential," "project," "propose," "strategy" and similar terms and phrases, or by the use of future tense. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which are made and speak only as of the date of this Statement.
Our actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, we assume no obligation to update or revise these forward-looking statements or provide reasons why actual results may differ.
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SOURCE Foundry JV Holdco LLC
FAQ
What are the key amendments proposed by Foundry JV Holdco to its Senior Secured Notes?
What is the consent fee being offered to noteholders in the solicitation?
When does Foundry JV Holdco's consent solicitation expire?
What percentage of noteholders must approve the proposed amendments?
How do the proposed amendments affect Intel's guaranty obligations?
