Former Edcon group entity gives results of ordinary share tip offer

By Caroline Salls

Pittsburgh, Oct. 25 – Former Edcon group company Holdco 2 announced Friday that a tip offer from the new holding company owned by lenders and landlords of the group for up to 2% of ordinary shares of the new company stapled with notes issued by Edcon Ltd. to A and B shareholders of Holdco 2 has been accepted by 78% of shareholders.

According to a notice released Friday, the tip offer acceptance period expired on Oct. 24.

As previously reported, following a share pledge enforcement over Edcon Acquisition Proprietary Ltd.’s shares in Edgars Consolidated Stores Ltd., debt issuers K2016470219 (South Africa) Ltd., HoldCo 1, and K2016470260 (South Africa) Ltd., HoldCo 2, were sold to a new holding company owned by lenders and landlords of the former Edcon group.

As a result of the enforcement, the HoldCos have “neither the credit support nor the income previously provided by ECSL and its subsidiaries” to service the debt represented by five series of PIK notes.

Holders of the following notes were notified:

• HoldCo 1’s series A-1 25% senior secured PIK notes due 2022;

• HoldCo 1’s series A-2 5% senior secured PIK notes due 2022;

• HoldCo 2’s series A 8% senior secured PIK notes due 2022;

• HoldCo 2’s series B 3% senior secured PIK notes due 2022; and

• HoldCo 2’s series B 10.177% senior secured PIK notes due 2022.

Following completion of the offer, the HoldCos will be liquidated and the notes will be cancelled upon liquidation.

Lucid Issuer Services Ltd. (edcon@lucid-is.com) is managing the offer.

Edcon is a non-food retailer based in Johannesburg.

© 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.