BC Ferries Announces Discussions with Bondholders

VICTORIA, BC, Dec. 23, 2024 /CNW/ - British Columbia Ferry Services Inc. ("BC Ferries") announced today that it engaged in discussions over the past two weeks with select institutional bondholders of its outstanding obligation bonds regarding a prospective amendment to the terms of its master trust indenture dated May 19, 2004 ("MTI").  The discussions sought to gain clarity as to the degree of bondholder support for a prospective change to the terms of a covenant permitting BC Ferries to incur additional indebtedness. 

Following its conversations, BC Ferries has received feedback from such bondholders and is considering the launch of a formal consent and proxy solicitation to amend the MTI which would be conducted pursuant to the process required by the MTI.  It is also expected that if such a consent and proxy solicitation were to be launched, it would likely include the offering of a work consent fee in accordance with standard market practice for such transactions.   

This notice does not represent a notice of the launch of a consent solicitation, proxy solicitation or bondholder meeting and does not provide any assurance that such a process or transaction will be executed. Any formal consent and proxy solicitation will only be made in accordance with the terms and conditions of a consent solicitation statement which will be distributed to all bondholders.

SOURCE British Columbia Ferry Services Inc.