Marble Arch Residential No. 4 gets noteholder OK at adjourned meetings

By Wendy Van Sickle

Columbus, Ohio, June 28 – Marble Arch Residential Securitisation No. 4 plc received bondholder support for its proposed extraordinary resolutions on Wednesday at a pair of adjourned meetings for five series of mortgage-backed floating-rate notes due March 2040, according to a company filing with the London Stock Exchange.

The meetings had previously been adjourned for lack of quorum, and a quorum was achieved for each of the two adjourned meetings.

The London-based issuer held meetings for the holders of its €36.4 million class B1a notes, $27.1 million class B1b notes, £20 million class B1c notes, €43.45 million class C1a notes and £15 million class C1c notes on May 14.

Adjourned noteholder meetings were held in London at 9 a.m. ET for the class B notes and 9:20 a.m. ET for the class C notes.

The issuer was seeking noteholder approval of an extraordinary resolution at the request of the mortgage administrator.

The mortgage administrator has the option to purchase the remaining loans from the issuer on any interest payment date following a date on which the aggregate sterling equivalent principal amount outstanding of the notes is less than 10% of the amount outstanding on the closing date.

As of the interest payment date that fell in March, the sterling equivalent principal amount outstanding of the notes was £158,283,163, or 18.84% of the £840 million amount outstanding on the closing date.

The issuer sought and obtained the approval of the noteholders to change the 10% threshold to 20%. The effect of the change is that the mortgage administrator will be able to exercise its option to purchase all of the remaining loans. If it did so, this would result in the issuer redeeming all of the notes at their principal amount outstanding plus any accrued interest.

The issuer gave no assurance that the mortgage administrator will exercise its option and that the notes would therefore be subject to early redemption.

The quorum for each adjourned noteholders' meeting was one or more persons holding or representing at least 25% of the aggregate sterling equivalent principal amount outstanding of the notes of the relevant class then outstanding.

To be passed at an adjourned noteholders' meeting, the extraordinary resolution required a majority of at least 75% of the votes cast.

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