Moto Finance to redeem remaining 10¼% notes on April 9 at 105.125

By Marisa Wong

Madison, Wis., March 10 – Moto Finance plc issued a notice of conditional redemption for its 10¼% second-lien notes due 2017 with an original principal amount of £176 million.

The company intends to redeem in full its outstanding 10¼% notes on April 9 at a price of 105.125 plus accrued interest.

The record date for the redemption is April 8.

The redemption is conditioned on settlement of an issue of new second-lien notes prior to the redemption date and less than 100% of existing holders tendering their notes in the tender offer announced on Monday.

As reported, Moto has begun a tender offer to repurchase for cash any and all of its outstanding 10¼% second-lien notes.

The company is offering to purchase the existing notes at 105.325.

Holders who tender their notes by 1 p.m. ET on March 17, the expiration of the offer, will receive the purchase price plus accrued interest up to but excluding the payment date, which is expected to be March 24.

The tender offer is part of a refinancing transaction, under which the company expects to issue, on or prior to the payment date, the new second-lien notes.

Proceeds of the new notes will be used, among other things, to fund the Regulation S tender offer and the redemption.

Moto Finance is a subsidiary of Moto Hospitality Ltd., a Toddington, England-based operator of motorway service stations.

Moto Hospitality announced in a separate release on Monday that it plans to offer £175 million of Rule 144A and Regulation S second-lien notes due 2020.

© 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.