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London & Quadrant accepts tenders for £35 million RSL Finance bonds
By Marisa Wong
Los Angeles, June 20 – London & Quadrant Housing Trust announced the results of its June 12 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.
As of the expiration of the offer at 11 a.m. ET on June 19, holders had tendered £47,221,000 aggregate original nominal amount of the bonds, equivalent to £37,168,754 aggregate amortized nominal amount, according to a notice on Tuesday.
There was £170.45 million nominal amount of the bonds outstanding at the start of the offer. The bonds have been subject to amortization since Sept. 30, 2013, so the outstanding amount was 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.
As a result, the company will accept for purchase bonds tendered under the offer subject to a proration factor of 74.15%.
The purchase price is 107.702, based on the 1% U.K. Treasury due Jan. 31, 2032 and a purchase spread of 105 bps. Pricing was determined around 6 a.m. ET on June 20.
The company will also pay accrued interest.
Settlement will be on June 22.
As previously announced, 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.
NatWest Markets plc (+44 20 7678 5222; NWMLiabilityManagement@natwestmarkets.com) is the dealer manager for the tender offer.
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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