Rothschild & Co. Continuation consent bid fails for floaters, Libor remains

By Mary-Katherine Stinson

Lexington, Ky., July 17 – Rothschild & Co. Continuation Finance BV’s consent solicitation for its $200 million primary capital undated floating-rate notes guaranteed by Rothschild & Co. Continuation Ltd. (ISIN: GB0047524268) failed to pass, ensuring that the reference rate of the notes will remain synthetic Libor while it is quoted, currently until Sept. 30, 2024, according to a notice.

Holders voted on an extraordinary resolution to amend the notes at a July 14 meeting in London. Though a two-thirds quorum was present, the extraordinary resolution did not pass.

The issuer sought consents from noteholders to change the reference rate for the notes to SOFR in arrears plus a spread adjustment of 42.826 basis points.

A 0.05% consent fee was offered, which would have been paid no later than 10 business days after the meeting date if the resolution had been approved.

Consent instructions were due by 11 a.m. ET on July 11.

The tabulation agent was Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Owen Morris; rothschild@is.kroll.com; https://deals.is.kroll.com/rothschild).

In light of the failed bid, the issuer is consulting with the agent bank regarding future interest rate fixes, according to the notice. The notes’ terms and conditions provide that the rate of interest will be determined by the trustee if the agent bank fails to determine it.

The issuer is based in Amsterdam. Rothschild & Co. is a financial services group with headquarters in Paris and London.

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