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Maturity Extension, Change of Interest Rate and Principal of MPE Properties Ltd - 10.50% Secured Fixed Rate Loan Notes Due 25 March, 2019
Hamilton, Bermuda – 8 April 2019 – The Bermuda Stock Exchange (the “BSX”) announces a maturity extension of MPE Properties Ltd - 10.50% Secured Fixed Rate Loan Notes Due 25 March, 2019 (the “Notes”) and a change of interest rate and principal amount. The BSX confirms the maturity extension of the Notes to 25 September 2019. The interest rate will now be 14% and the principal outstanding is £844,347. MPE Properties Ltd filed the following release:
MPE Properties Limited (the “Company”)
£1,050,000 Secured Loan Notes due 25 March 2019 (the “Notes”)
The Company announces the extension of the life and the listing of the Notes to the earlier of (i) 25 September 2019 or (ii) the date that the Notes are redeemed in full.
The Notes were issued on 25 March 2015. The £1,050,000 proceeds of the issue were used to acquire the factory premises at 11 Carrakeel Drive, Maydown (the “Property”). In accordance with the amortization schedule of the Notes, the outstanding principal amount of the Notes on 25 March 2019 was £844,347. Final repayment of the Notes depends on the sale or refinancing of the Property.
The Company has received an acceptable offer to purchase the Property for an amount that will allow the Notes to be repaid in full. It was intended that the sale of the Property would have been completed before the scheduled maturity of the Notes, but unfortunately this was not possible.
Under the terms of the loan note instrument, noteholders together holding not less than 75% of the principal amount of the Notes (the “Noteholder Majority”) may direct LGB & Co. Limited (“LGB”) as Security Trustee to call an Event of Default. LGB has proposed to Noteholders that the Company is given more time to complete the sale of the Property. This proposal has been accepted by the Noteholder Majority.
Under this arrangement quarterly interest payments will continue at a default interest rate of 14% p.a. There will be no further amortisations until redemption. Payments to the Company by the lessee of the Property will be sufficient to cover the interest payments.
Contact: Andrew Boyle, LGB & Co. Limited (andrew.boyle@lgbco.com 44-20-7518 9895)