Korea ACE solicits consents for $288 million floaters due 2038

By Toni Weeks

San Luis Obispo, Calif., July 10 – Korea ACE Mortgage Co. began a consent solicitation for its $288 million of secured floating-rate notes due 2038, according to a company notice with the London Stock Exchange.

The notes are backed by residential mortgage loan assets originated by Citibank Korea Inc.

The company is seeking shareholder approval to permit the note trustee, Capita Trust Co. Ltd., to instruct the security agent, HSBC Ltd., Seoul Branch to have Hanmi Mortgage Securitization Specialty Co. to accept the offer contained in a clean-up call notice.

The clean-up call notice will be delivered by Citibank Korea Inc. to Hanmi, the purchaser under a servicing agreement.

If Hanmi accepts the offer, it will receive enough proceeds from Citibank to discharge all liabilities in respect of the notes, resulting in full redemption of the notes.

Noteholders who submit valid electronic votes in favor of the resolution by 5 p.m. ET on July 25 will receive an early voting fee of 1% of the current principal amount of outstanding notes.

A noteholders meeting is scheduled for 9 p.m. ET on Aug. 4 in Hong Kong.

Citigroup Global Markets Inc. (852 2501 2595) is the solicitation agent. Citibank NA, London Branch (44 20 7508 3867) is the tabulation agent.

The special purpose vehicle was formed in May 2007 to issue asset-backed securities. It is located in George Town, Grand Cayman, Cayman Islands.

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