Market Overview

The Phoenix Companies to Seek Consent to Amend Indenture for 7.45% Quarterly Interest Bonds Due 2032


The Phoenix Companies (NYSE: PNX) today said it will seek the consent of bondholders holding the majority in principal amount of its 7.45% Quarterly Interest Bonds Due 2032 (NYSE: PFX) to amend the indenture governing the bonds.

The amendment to the terms of the indenture will allow the company to extend the date for providing the third quarter 2012 SEC periodic report to the bond trustee.

As announced on Nov. 8, 2012, Phoenix is restating financial statements for prior periods and, as a result, delayed filing its third quarter 2012 Form 10-Q with the SEC. The company said it intends to file this report prior to the timely filing of its year-end 2012 Form 10-K. The SEC's deadline for the Form 10-K filing is March 18, 2013.

As a result of the restatement, the company was unable to meet the current requirement to file SEC periodic reports with the trustee within 15 days after the applicable SEC filing deadline. The company is seeking to remedy this covenant violation through the amendment to the indenture.

Within the next 10 days, Phoenix plans to make available to its bondholders a Consent Solicitation Statement and begin outreach to the bondholders for their consent to the amendment.

Phoenix's 7.45% Quarterly Interest Bonds, with approximately $253 million outstanding, are a retail issue sold in $25 increments. They currently trade near par.

Posted-In: News Financing


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