Ei Group seeks consents from 6.542%, 5.659% asset-backed noteholders

By Wendy Van Sickle

Columbus, Ohio, June 14 – Ei Group plc is soliciting consents from holders of its £435 million 6.542% class A3 asset-backed notes due 2021 and its £535 million 5.659% class A4 asset-backed notes due 2027 to make some amendments to the securitization-transaction documents, according to a notice.

Ei Group said the changes will support the company’s operational strategy.

The proposal is designed to allow assets held within the group to be better aligned with Ei Group’s strategy of maximizing the value of its asset base, according to the notice.

Ei Group said it is seeking to give its Unique Pub Properties Ltd. subsidiary greater flexibility to dispose of non-tied pubs to allow it to proactively manage its portfolio and deliver the group's strategy, as well as monetize the value of pubs that do not form a long-term part of the group's tied estate.

The disposal proceeds of this monetization will be shared with noteholders via prepayment of the notes at a make-whole price and in class order to accelerate deleveraging within the structure and minimize noteholder exposure to non-tied pubs.

Holders who vote on the amendments by 11 a.m. ET on June 25 will receive a consent fee of 0.375% of the amortized principle amount of the notes, regardless of whether they vote for or against the amendments.

The deadline to submit votes is 11 a.m. ET on July 3.

The proposal and consent solicitation have been considered at the issuer’s request by a special committee of the investment association, whose members hold about 38% of the outstanding class A3 and class A4 notes. The committee members find the proposal acceptable and intend to vote in favor of the extraordinary resolution containing the changes, according to the notice.

If passed, the extraordinary resolution will be binding on the holders of the issuer's £225 million 7.395% class M asset-backed notes due 2024 and its £190 million 6.464% class N asset-backed notes due 2032. It is not necessary for holders of the class M and class N notes to consent to the proposal for the amendments to take effect.

Formerly Enterprise Inns plc, Ei Group is a leased and tenanted pub company based in Solihull, England.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.