ABP Finance gets noteholder approval to switch to Sonia from Libor

By Angela McDaniels

Tacoma, Wash., June 11 – ABP Finance plc received noteholders consent to change the underlying rate for its £65 million floating-rate notes due 2022 to the Bank of England-administered benchmark interest rate, Sonia, from Libor, according to a filing with the London Stock Exchange.

Beginning June 26, the interest rate will be compounded daily Sonia plus 264.8 basis points, which is equal to 2.5% plus an interpolated basis of 14.8 bps. Until then, it remains Libor plus 250 bps.

The noteholders passed the extraordinary resolution at a meeting in London on June 11. The voting deadline was June 6.

In July 2017, the U.K. Financial Conduct Authority said it did not intend to use its powers to persuade or compel banks to submit contributions for Libor after the end of 2021 and would not in any case be in a position to compel banks to submit contributions indefinitely under the EU Benchmark Regulation.

The consent solicitation began May 20.

The company did not offer a consent fee.

The quorum required for the meeting was two or more persons holding or representing at least 75% of the principal amount of notes outstanding. At least 75% of the votes cast had to be in favor of the extraordinary resolution in order for it to pass.

NatWest Markets plc (+44 20 7678 5282 or liabilitymanagement@natwestmarkets.com) was the solicitation agent. Deutsche Bank AG, London Branch (+44 20 7547 5000 or xchange.offer@db.com) was the tabulation agent.

ABP Finance is the financing vehicle of London-based Associated British Ports.

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