Marble Arch Residential No. 4 adjourns noteholder meetings to June 26

By Angela McDaniels

Tacoma, Wash., June 11 – Marble Arch Residential Securitisation No. 4 plc adjourned bondholder meetings for five series of mortgage-backed floating-rate notes due March 2040 for lack of quorum, according to a company filing with the London Stock Exchange.

The London-based issuer held meetings for the holders of its €36.4 million class B1a notes, $27.1 million class B1b notes, £20 million class B1c notes, €43.45 million class C1a notes and £15 million class C1c notes on May 14.

Adjourned noteholder meetings will be held in London on June 26. The meeting time is 9 a.m. ET for the class B notes and 9:20 a.m. ET for the class C notes.

The issuer is seeking noteholder approval of an extraordinary resolution at the request of the mortgage administrator.

The mortgage administrator has the option to purchase the remaining loans from the issuer on any interest payment date following a date on which the aggregate sterling equivalent principal amount outstanding of the notes is less than 10% of the amount outstanding on the closing date.

As of the interest payment date that fell in March, the sterling equivalent principal amount outstanding of the notes was £158,283,163, or 18.84% of the £840 million amount outstanding on the closing date.

The issuer seeks the approval of the noteholders to change the 10% threshold to 20%. The effect of the proposed change is that the mortgage administrator would be able to exercise its option to purchase all of the remaining loans. If it did so, this would result in the issuer redeeming all of the notes at their principal amount outstanding plus any accrued interest.

The issuer gave no assurance that the mortgage administrator would exercise its option and that the notes would therefore be subject to early redemption.

The quorum for each adjourned noteholders' meeting will be one or more persons holding or representing at least 25% of the aggregate sterling equivalent principal amount outstanding of the notes of the relevant class then outstanding.

To be passed at an adjourned noteholders' meeting, the extraordinary resolution requires a majority of at least 75% of the votes cast.

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