Cordatus seeks waiver to allow for optional redemption of notes

By Jennifer Chiou

New York, Feb. 25 - Cordatus Recovery Partners I Ltd. announced that it is seeking approval of a proposed waiver to the trust deed that would allow for the redemption of its €324 million of class A senior secured floating-rate notes due 2022 and €112 million of subordinated notes due 2022.

The Dublin-based privately held company said that it understands that holders intend to exercise their option to request that the notes be redeemed in whole, according to a filing with the London Stock Exchange.

Holders of at least two-thirds of the notes must exercise their redemption option in order to complete the transactions.

CVC Cordatus Group Ltd, the collateral manager, stated in the filing that any contracts for the sale of collateral debt obligations it enters into on behalf of Cordatus Recovery with any of CVC Cordatus Group's affiliates will have a settlement date that falls within 30 days of entering into that agreement.

The trust deed includes a provision that the notes may not be optionally redeemed unless the collateral manager can give Cordatus evidence that it has entered into a binding agreement or agreements to purchase all or part of the collateral debt obligations held by or on behalf of Cordatus.

The issuer is looking to approve a proposal that would waive the requirement that any institution the collateral manager enters into an agreement with have a short-term senior unsecured debt obligations credit rating of at least P-1 from Moody's Investors Service and at least A-1+ from Standard & Poor's,

If the proposed redemption is approved and completed, following the final distribution of the proceeds of the liquidation and redemption amounts, Cordatus said it intends to enter into a deed of release, discharge and termination for all its secured obligations and the security granted under the trust deed.

Cordatus said it is also seeking the approval of noteholders to the proposed release.

The filing added that Barclays Bank plc confirmed to the trustee that it was owed no further secured obligations by Cordatus as of Feb. 25.

The trustee is Deutsche Trustee Co. Ltd. (attn: Managing Director - CLO Group (Cordatus Recovery Partners I); fax 44 20 7547 6732).

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