Cairn High Grade may redeem six note classes via ‘funds available’

By Susanna Moon

Chicago, Nov. 21 – Cairn High Grade ABS CDO 1 plc notified holders of several classes of notes that the issuer, the collateral manager and the holder of its class A1 delayed-draw floating-rate notes are discussing a potential redemption of the notes.

The notice was sent to holders of the Dublin-based issuer’s $911 million class A1 delayed-draw floating-rate notes due 2055, $20 million class A2 floating-rate notes due 2055, $20 million class B floating-rate notes due 2055, $20 million class C deferrable floating-rate notes due 2055, $15 million class D deferrable floating-rate notes due 2055 and $14 million class E notes due 2055.

The notes would be redeemed as early as Dec. 10 on a date that is not necessarily a scheduled payment date, according to a notice.

On the redemption date the issuer would do the following to the extent of the funds available:

• Firstly, make the payments in the order of priority; and

• Second, for any funds remaining after that, the noteholder distribution amount would be distributed on a pro rata and pari passu basis to the class A2 noteholders as to 38.0952% and the class B noteholders as to 61.9048%.

The terms would be “approved by the trustee without the express sanction of noteholders other than the sole class A1 noteholder on the basis that the potential redemption would not be materially prejudicial to the interests of the noteholders other than the sole class A1 noteholder as the amounts that would be received by such noteholders in their capacity as such pursuant to the potential redemption would be no less than their entitlement had the potential redemption not occurred due to the limited assets available to the issuer,” the notice said.

“For the avoidance of doubt, no amounts would be payable pursuant to the potential redemption in respect of the class A1 notes, the class C notes, the class D notes or the class E notes – such notes shall be redeemed and cancelled without further payment.”

Noteholders with questions about the potential redemption may contact the issuer by Dec. 4 by fax at +353 1 6125550 or by e-mail at ireland@wilmingtontrust.com.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.