Dragon Finance obtains consents to use Sonia for floaters due 2023

By Rebecca Melvin

Concord, N.H., May 25 – Dragon Finance BV announced that holders of an aggregate principal amount of 100% of its outstanding class A secured floating-rate notes due 2023 (ISIN: XS0116563668) approved proposed changes to the notes at a meeting via teleconference on May 25, according to a notice with the London Stock Exchange.

Holders of two other series of floating-rate notes, Dragon’s class B secured floating-rate notes due 2023 (ISIN: XS0116564393) and its class C secured floating-rate notes due 2023 (ISIN: XS0116564559), also passed the extraordinary resolutions for those notes, according to the same notice.

The proposed amendments will take effect on the payment date falling in July.

The changes were initially proposed April 29 and will substitute compounded daily Sonia for Libor as the reference rate for the notes.

As previously reported, due to the differences between compounded daily Sonia and Libor, the replacement of Libor will also require adjusting the margins payable in respect of the notes. The issuer proposed an increase in the applicable margin of 46.44 basis points for each note on top of the current margins of 90 bps, 95 bps and 100 bps for the class A, B and C notes, respectively.

To pass, each extraordinary resolution required a majority of at least 75% of those voting.

i2Capital Markets (+44 20 3633 1212 or info@i2capmark.com) was the tabulation agent.

The issuer is based in Amsterdam.

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