Rivoli gets needed consents for class A, B, C mortgage-backed floaters

By Jennifer Chiou

New York, Dec. 21 - Rivoli Pan Europe I plc announced that holders of its €413 million of class A commercial mortgage-backed floating-rate notes due 2018, €43 million of class B commercial mortgage-backed floating-rate notes due 2018 and €23.75 million of class C commercial mortgage-backed floating-rate notes due 2018 passed an extraordinary resolution at meeting in London.

As a result, the Dublin-based company said it will enter into standstill documents.

The company was soliciting consents to propose an extension to the senior facilities agreement for the MS Edificio Santa Hortensia, SL loan, according to a Nov. 29 notice to bondholders.

The Santa Hortensia loan was to be due on Jan. 10, 2013, and Rivoli said previously that it had explored various options to repay the loan but believed it would be unable to do so.

Since the measures passed, the company said that the standstill proposal will be implemented by 11:59 p.m. on Jan. 10.

In order to form a quorum, holders of at least 50.1% of the outstanding notes had to be represented at the meeting, and at least 75% of votes had to be cast for the measure in order for it to pass.

Background information

On Dec. 21, 2006, Rivoli issued €479 million of the commercial mortgage-backed floaters with proceeds used to acquire a Spanish note issued by the Spanish issuer.

The Spanish issuer used the proceeds of the note to fund the acquisition of mortgage instruments issued by CA-CIB Sucursal en Espana representing the Santa Hortensia loan and related security.

The loan was then applied to help finance the acquisition of an office building located in Madrid, let to IBM under a lease expiring on Sept. 30, 2015. The outstanding loan balance under the Santa Hortensia agreement is currently €105.1 million.

In order to repay the loan, the company proposed a standstill period, waiving default, from Jan. 10, 2013 through April 10, 2013 to give it more time to restructure the loan.

The principal payment agent was Citibank, NA, London Branch. The note trustee was Law Debenture Trustees Ltd., and the Irish paying agent was Citibank International plc.

The issuer and noteholders' financial adviser was Brookland Partners LLP. Questions may be directed to Gareck Wilson at gareck.wilson@brookland.com or 44 20 7645 5191 and Nassar Hussain at nassar.hussain@brookland.com or 44 20 7645 5182.

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