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London & Quadrant tenders for RSL Finance 2038 loan-backed bonds
By Marisa Wong
Los Angeles, June 12 – London & Quadrant Housing Trust launched an invitation to holders of RSL Finance (No. 1) plc’s £342.95 million 6.625% secured loan-backed bonds due 2038 (ISIN: XS0155451866) to tender their bonds for purchase for cash, according to a notice.
There is currently £170.45 million nominal amount of the bonds outstanding. The bonds have been subject to amortization since Sept. 30, 2013, so the outstanding amount is the product of the original amount times the pool factor, 78.71234%.
The target acceptance amount under the offer is £35 million, which is equal to an amortized amount of £27,549,319.
The target acceptance amount reflects the full outstanding balance of a loan facility made available to Beacon Housing Association Ltd. In connection with the issue of the 2038 bonds, RSL became lender under the loan agreement. The facility is one of a number of loan facilities funded by the bonds.
As a result of an amalgamation under the Co-operative and Community Benefit Societies Act 2014, all the rights and obligations of L&Q Beacon Homes Ltd. (formerly known as Beacon Housing Association Ltd.) as borrower under the loan agreement have transferred to London & Quadrant.
The purchase price under the tender offer will be based on the 1% U.K. Treasury due Jan. 31, 2032 and a purchase spread of 105 bps. The company will also pay accrued interest.
Tenders may be subject to proration.
The offer will expire at 11 a.m. ET on June 19.
Pricing will be determined at or around 6 a.m. ET on June 20.
Settlement will be on June 22.
NatWest Markets plc (+44 20 7678 5222; NWMLiabilityManagement@natwestmarkets.com) is the dealer manager.
The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Harry Ringrose; lqgroup@is.kroll.com; https://deals.is.kroll.com/lqgroup).
The residential developer is based in London.
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