Singapore’s Cordlife collects votes to add call option to 4.9% notes

By Susanna Moon

Chicago, Nov. 7 – Cordlife Group Ltd. obtained the needed votes to amend its S$68.25 million of outstanding 4.9% notes due 2017 to add a call option to the notes.

The proposal tabled at the noteholders meeting last Friday in Singapore was duly passed, and the company expected to enter into a supplemental indenture on Monday, according to a company announcement.

As announced Nov. 2, Cordlife received consents from holders of S$58 million principal amount, or 84.98%, of its 4.9% notes and, based on the vote count, Cordlife expected to meet quorum at the meeting and to collect the needed votes to amend the note terms.

Cordlife was asking for consents to redeem the notes at 101.35% of par within 90 days after the note terms are amended.

The consent solicitation ended at 10 p.m. ET on Nov. 1. The solicitation began on Oct. 12.

The company previously explained that it issued the notes in October 2014 to fund its acquisition of the $25 million 7% senior convertible note due Oct. 3, 2017 issued by China Cord Blood Corp. for $44.05 million.

The company sold its holding of the China Cord Blood note on Nov. 13, 2015 and would like to use the proceeds to redeem the 4.9% notes, which requires adding a call option.

The company also was seeking approval to remove the interest coverage ratio because it is no longer receiving interest income from its holding of the China Cord Blood notes.

As of Oct. 13, the company was preparing its financial statements for the three months ended Sept. 30, and the results of the test period ended Sept. 30 were not yet available. As a precaution, the company proposed to obtain waivers for any non-compliance.

The company proposed to add a new financial covenant that would require maintaining at least S$75 million of unencumbered cash and cash equivalents as long as the notes are still outstanding.

Credit Suisse (Singapore) Ltd. is the solicitation agent.

Cordlife is a Singapore-based health care company that provides cord blood and cord lining banking services.

© 2015 Prospect News.
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