Preps falls short of quorum; noteholder meetings delayed until Nov. 29

By Jennifer Chiou

New York, Nov. 16 - Three issuers of PREPS securities failed to reach a quorum at separate Nov. 15 meetings for holders in London. The affected notes include the following:

• Preps 2007-1 plc's €35 million of PREPS class B1 floating-rate notes due 2016;

• Preps 2006-1 plc's €238.1 million of PREPS class A1 floating-rate notes due 2015 and €900,000 of PREPS class A2 fixed-rate notes due 2015; and

• Preps 2005-2 plc's €41.5 million of PREPS class B1 floating-rate notes due 2014 and €12.5 million of PREPS class B2 fixed-rate notes due 2015.

The Preps 2005 notes have a scheduled redemption date of Dec. 8, while that date is July 18, 2013 for the Preps 2006 notes and March 7, 2014 for the Preps 2007 notes.

All notes are collateralized by financing instruments with portfolio companies, according to press releases, and these portfolio companies may not be able to pay in full on the redemption dates.

At meetings to take place on Nov. 29 in London, the issuers propose an extraordinary resolution to amend a condition of the notes to elevate the priority of payments for the notes in the expenses reserve amount to fall immediately after the coupon payments.

The issuers are also proposing, among other things, a cap of €2 million to be applied towards the expenses reserve amount.

The Preps issuers did not reach a quorum of 75% for their notes, and the quorum of the adjourned meeting at the end of the month will be 33.33% for all series.

Voting certificates should be requested no later than Nov. 27.

The principal paying agent is the Bank of New York Mellon, and the Irish paying agent is the Bank of New York Mellon (Ireland) Ltd.

Euroclear's corporate action department can be reached at 322 224 4245 or Bonds_offers@Euroclear.com, and Clearstream's CIE department can be reached at 352 46564 6414; fax: 352 46564 8248; or ciefaxes.cs@clearstream.com.

Questions may be directed to Yves Haussener (41 41 760 20 15 or yves.haussener@ceg-ag.com).

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