Bruntwood gets consents at meeting to amend mortgage-backed floaters

By Susanna Moon

Chicago, Feb. 19 - Bruntwood Alpha plc said holders voted to amend three classes of its commercial mortgage-backed floating-rate notes due 2017 at a meeting held on Feb. 19.

The company began a consent solicitation on Jan. 28 for its £350 million of class A notes, £37 million of class B notes and £53 million of class C notes.

The Bruntwood Group will prepay a minimum of £123.05 million of the notes upon implementation of the note proposals, according to a company press release.

Under the extraordinary resolution, holders agreed to the following:

• Extend the final maturity date of the notes to the interest payment date falling in January 2019;

• Change the interest rate to Libor plus 80 basis points for the class A notes, Libor plus 87 bps for the class B notes and Libor plus 109 bps for the class C notes. The margin over Libor will increase in January 2014 to 300 bps for the class A notes, 450 bps for the class B notes and 700 bps for the class C notes;

• Allow for the exchange of the notes that are self-held by the Bruntwood group for subordinated loans beginning in January 2014. The interest rate on the subordinated loans will be the same as the interest rate on the exchanged notes;

• Provide for the redemption of at least £123.05 million of the notes on the restructuring effective date, which was expected to be Feb. 20.

The three classes of noteholders voted at separate meetings. At each meeting, a quorum of at least 75% of the outstanding notes was required. In order for the extraordinary resolution to be passed, at least three-fourths of the votes cast had to be in favor of it, and it needed to be passed by the holders of each class of notes in order to become effective.

Cairn Capital Ltd. was financial adviser to an ad hoc group of holders representing 71% of the class A notes, 56% of the class B notes and 97% of the class C notes. The company said the group had confirmed to Cairn that they had credit approval to vote in favor of the extraordinary resolution.

Bruntwood Alpha is based in Manchester, England.

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