Brunswick holders may be able to put $600 million 6½% notes due 2017

By Susanna Moon

Chicago, Nov. 15 – Brunswick Rail Ltd. plans to sell off a majority of its equity stake, which will likely trigger a put option under the $600 million 6½% guaranteed notes due 2017 issued by Brunswick Rail Finance DAC.

If there is a change of control, the notes would be putable at 101 plus accrued interest, according to a notice by PJT Partners (UK) Ltd.

Proxima Capital Group has been hired as the financial adviser to the ad-hoc shareholders committee of Brunswick Rail Ltd. and is marketing for potential investors to acquire up to 100% of the company's equity, which would constitute a change of control under the note terms.

“All parties interested in acquiring the shares of the company should therefore be aware that within 30 calendar days of the change of control occurring, the issuer will be obliged to give notice to the trustee and the noteholders specifying the details relating to the occurrence of the change of control and the procedure whereby the noteholders are able to exercise the change of control put option,” the notice said.

The group also clarified that the restructuring proposal made to the company on June 22 was rejected and is no longer available, the release added.

Noteholders may contact the group's financial and legal advisers at PJT Partners at +44 0 20 3650 1100, Gudgeon@pjtpartners.com or Whittaker@pjtpartners.com, or Shearman & Sterling at +44 (0) 20 3650 1100, +44 (0) 20 7655 5000, solomon.noh@shearman.com or clifford.atkins@shearman.com.

As announced July 1, Brunswick Rail Ltd.’s planned exchange offer for Brunswick Rail Finance Ltd.’s $600 million of 6½% guaranteed notes due 2017 was rejected by an informal group of noteholders.

Brunswick Rail is a railcar operating lessor based in Moscow.

© 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.