Brightsea EOL calls £100 million 11% first mortgage debentures

By Angela McDaniels

Tacoma, Wash., April 27 - Brightsea EOL Ltd. will redeem its £100 million of 11% first mortgage debenture stock due 2025 on April 30, according to a company news release.

Holders will receive 95% of par, and accrued interest will be waived.

At a meeting on March 29, the company received approval from the holders to make changes to the trust deed that were needed in order to call the debentures.

One of Brightsea EOL's parent companies, Brightsea UK Ltd., has a loan of £207.5 million, and the lender for that loan has second priority over the security granted in favor of the debentures. Brightsea EOL said it does not currently generate enough rental income to cover the interest due on both the loan and the debentures. It estimated the current shortfall to be more than £4 million on an annualized basis.

Brightsea EOL's ultimate parent company, Trafalgar Overseas Ltd., has been covering the shortfall, but it will only continue to do so if group borrowings are refinanced, which includes the early redemption of the debentures.

Brightsea EOL is a Leeds, England-based property group. It was formerly known as Evans of Leeds.

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