Man Strategic calls $400 million floaters, begins tender for 5% notes

By Susanna Moon

Chicago, May 3 - Man Strategic Holdings Ltd., formerly Man Group plc, said it will redeem its $400 million of floating-rate step-up subordinated notes due 2015 at par plus accrued interest up to but excluding the redemption date of June 24.

The company also began a tender offer for its $232,089,000 5% subordinated notes due 2017 and is seeking approval to redeem any remaining notes after the offer ends, according to a separate press release.

The purchase price will be par for notes tendered by the end of the offer at 11 a.m. ET on May 22.

Those who tender by the early deadline at 11 a.m. ET on May 14 will receive 102% of par, which includes an early tender fee of 2%.

The company will also pay accrued interest.

Settlement has been set for May 31.

The purpose of the offer is to reduce debt and the associated interest expense, the release noted.

Holder approval sought

The company will hold a meeting in London on May 28 to ask noteholders to approve the extraordinary resolution.

Holders who do not want to tender their notes under the offer may receive a fee of 2% of par by delivering consents to the proposal.

The payment of the consent fee is conditioned on the company obtaining the needed votes to pass the measure, the release noted.

In order to form a quorum, at least two-thirds of the principal amount of notes must be represented at the meeting. If a quorum is not formed within 15 minutes of the meeting, it will be adjourned to between 13 and 42 clear days later.

For the measure to pass, at least three-quarters of the votes cast must be in favor of the measure.

The tender offer is not conditioned on the company obtaining enough votes to pass the measure.

The dealer managers are Merrill Lynch International (+44 20 7995 3715/+44 20 7995 2324, attn.: John Cavanagh/Tommaso Gros-Pietro, email: john.m.cavanagh@baml.com / tommaso.gros-pietro@baml.com) and UBS Ltd. (+44 20 7567 0525, attn.: liability management group, email: ol-liability-management@ubs.com). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: David Shilson/Paul Kamminga, email: man@lucid-is.com).

Man Strategic Holdings, formerly Man Group, is a London-based alternative investment management business.

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