Grainger gives 3.625% convertibles holders security interest notice

By Jennifer Chiou

New York, Nov. 22 - Grainger plc notified holders of its £112 million of 3.625% convertible bonds due 2014 that the same guarantee that will be granted to its recent bond issue will also apply to its existing convertible bonds, according to a filing with the London Stock Exchange.

The company stated that it will not create any security interest over any of its assets to secure any relevant indebtedness without at the same time giving the convertible bonds the same security interest. It will also ensure that its subsidiaries refrain from the same action.

As reported, Grainger priced a £200 million issue of non-callable seven-year guaranteed secured notes (/BB+/BB+) at par to yield 5% on Thursday, an issue that will constitute relevant indebtedness.

Accordingly, the floating-charge security to be granted by the issuer that will guarantee the new notes will also secure the existing convertibles.

Grainger is a Newcastle upon Tyne, England-based residential property management company.

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