Lock solicits consents for euro-denominated floaters, 7% secured notes

By Jennifer Chiou

New York, Dec. 17 – Lock AS announced the launch of the consent solicitation for its €100 million of senior secured floating-rate notes due 2020 and its €150 million of 7% senior secured notes due 2021.

According to a filing with the London Stock Exchange, the company issued the notes in November to partially fund the acquisition of a collection unit from a Spanish bank.

Under the note indenture, if the acquisition is not complete on or prior to Jan. 4, the issuer is required to redeem the remaining outstanding principal amount of notes at par plus accrued interest to the redemption date.

The filing noted that while all other approvals have been granted, the completion of the acquisition remains subject to, among other things, the approval of the Spanish Ministry of Economics.

Because this approval has taken longer than originally anticipated, Lock is seeking holder consent to amend the Jan. 4 temporary notes escrow longstop date to March 4.

The solicitation will expire at 1 p.m. ET on Dec. 23.

Lock said it is offering a cash consideration of €2.50 for each €1,000 principal amount of notes for those who submit consents.

Deutsche Trustee Co. Ltd. is the trustee, and Deutsche Bank AG, London Branch is the principal paying agent.

Goldman Sachs International is the solicitation agent (44 20 7774 9862; liabilitymanagement.eu@gs.com), and Lucid Issuer Services Ltd. is the tabulation and information agent (44 20 7704 0880; lindorff@lucid-is.com).

The issuer is based in Oslo.

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