Novation Companies Indenture, Senior Notes Amended


Novation Companies filed with the U.S. Bankruptcy Court a notice of filing form of (a) amended indenture and (b) amended senior notes pursuant to the Debtors’ First Amended Joint Chapter 11 Plan of Reorganization.

Among other things, the indenture document notes, “Section 3.1(a) of the Indenture is hereby deleted in its entirety and replaced with the following: The unpaid principal amount of the Senior Notes shall bear interest at a rate equal to LIBOR plus 3.50% per annum or such other rate approved by the Bankruptcy Court in the Chapter 11 Cases (the ‘Full Rate’), such interest to accrue from the Plan Effective Date or the most recent Interest Payment Date to which interest has been paid or duly provided for, and any overdue principal, premium, if any, or any overdue installment of interest shall bear Additional Interest at the Full Rate compounded quarterly from the dates such amounts are due until they are paid or funds for the payment thereof are made available for payment.”

The senior notes amendment states, “The Senior Notes are issuable only in registered form without coupons in minimum denominations of $100,000 and any integral multiple of $1,000 in excess thereof.”

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