Man Strategic fails to get quorum, moves meeting for 5% notes to June

By Susanna Moon

Chicago, May 28 - Man Strategic Holdings Ltd. said it adjourned the meeting held Tuesday for its $232,089,000 5% subordinated notes due 2017, as there were not enough holders present to form a quorum.

The meeting has been moved to June 11, according to a company press release.

The company began a tender offer May 3 for the 5% notes and is seeking approval to redeem any remaining notes after the offer ends, as noted before.

The tender offer ended at 11 a.m. ET on May 22, and the company said May 28 that it will announce its decision after the June 11 meeting whether to accept tendered notes for purchase.

In order to form a quorum, at least two-thirds of the principal amount of notes needed to be represented at the meeting. If a quorum was not formed within 15 minutes of the meeting, it was to be adjourned to between 13 and 42 clear days later.

For the measure to pass, at least three-quarters of the votes cast must be in favor of the measure.

Holders who do not want to tender their notes under the offer may receive a fee of 2% of par by delivering consents to the proposal.

The payment of the consent fee is conditioned on the company obtaining the needed votes to pass the measure, the release noted.

Tender offer

In the tender offer, the purchase price will be par for notes tendered by the end of the offer on May 22.

Those who tendered by the early deadline at 11 a.m. ET on May 14 will receive 102% of par, which includes an early tender fee of 2%.

The company will also pay accrued interest.

Settlement has been set for May 31.

The purpose of the offer is to reduce debt and the associated interest expense, a previous release noted.

The tender offer is not conditioned on the company obtaining enough votes to pass the measure.

The dealer managers are Merrill Lynch International (+44 20 7995 3715/+44 20 7995 2324, attn.: John Cavanagh/Tommaso Gros-Pietro, email: john.m.cavanagh@baml.com / tommaso.gros-pietro@baml.com) and UBS Ltd. (+44 20 7567 0525, attn.: liability management group, email: ol-liability-management@ubs.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: David Shilson/Paul Kamminga, email: man@lucid-is.com).

Man Strategic, formerly Man Group plc, said on May 3 that it would redeem its $400 million of floating-rate step-up subordinated notes due 2015 at par plus accrued interest up to but excluding the redemption date of June 24.

The company is a London-based alternative investment management business.

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