Clear Leisure gets OK to extend €9.9 million 0% bonds by two years

By Susanna Moon

Chicago, Dec. 31 – Clear Leisure plc said it obtained holder approval to amend its €9.9 million zero-coupon bonds due Dec. 15, 2015 at the meeting held Thursday in London.

As a result, the maturity date was extended by two years to Dec. 15, 2017 and the coupon was effectively reduced to 7% from 9½%, according to a company notice.

The bondholder meeting had been adjourned on Dec. 16 because it lacked quorum. Of the 36.36% of holders represented, all of them voted in favor of the proposals, according to another company press release.

The quorum needed at the adjourned meeting was then reduced to holders representing 25% of the notes from those holding 66.66%.

The meeting was announced Nov. 26.

The company sought to extend the notes and to amend the redemption price to 114.49% of par, giving the notes an effective annual interest rate of 7%, compared with 9½%, according to the original announcement.

The company said at the time that it had “confidentially discussed the amendments to the bond with certain of the bondholders, representing more than 50% of bonds in issue and, based on the bondholders’ responses during these discussions, the board expects them to be supportive of the proposals.”

“Having completed the restructuring of most of the existing debt with loan noteholders and bondholders, Clear Leisure has reduced materially the cost of its debt instruments and extended their maturity,” Francesco Gardin, the chief executive officer and chairman of the company, said in the company press release Thursday.

“The company will continue the realization strategy of its assets and the investigations aimed at recovering value from previous investments already written off.”

Other news

Clear Leisure also sold Alnitak Sarl to an affiliate of a U.S.-based investment fund for €1.2 million. After the acquisition of 49% of Alnitak from Halcyon Sarl for €300,000, net cash proceeds to Clear Leisure from the sale before transaction costs are €900,000.

Proceeds from the sale will be used to make further settlements with creditors and will allow the company to pursue other identified asset realizations, the press release noted.

Clear Leisure said it reached an agreement with Eufingest SA, in which the £200,000 convertible loan note issued on Oct. 28 has been repaid and the remaining two €200,000 each loan notes expiring Thursday have been rescheduled into a new convertible loan note for €400,000, plus interest accrued to date, repayable by Dec. 1, 2016, carrying a 2.5% interest and convertible at 0.75p per share. The new loan note includes a £200,000 facility available to the company on demand. Eufingest SA is a related party.

ZAI Corporate Finance (+44 0 20 7060 2220) is the adviser. Peterhouse Corporate Finance (+44 0 20 7469 0935) is the joint broker.

Clear Leisure plc is a London-based leisure and real estate investment company.

© 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.