Travelex holders agree to reorganize £240 million notes, PIK notes

By Susanna Moon

Chicago, Nov. 14 – Travelex Financing plc said holders of its £240,117,515 unsecured subordinated loan notes due 2020 and unsecured subordinated pay-in-kind notes due 2020 agreed to a reorganization related to the sale of the group.

The company will pay interest due on the notes in kind, after which the company will then novate and transfer to TP Financing 0 Ltd. (TP0) all of its obligations, duties and liabilities under the loan notes for part of the nominal amount, the payment for which will be equal to the nominal amount and will be left outstanding as a debt owed by the company to TP0, according to a company press release.

After that, TP0 will novate and transfer to Travelex Holdings Ltd. the novated obligations, the payment for which will be equal to the nominal amount and will be left outstanding as a debt owed by TP0 to Travelex.

Then each holder will subscribe for, and Travelex will allot and issue, new class A ordinary shares in the capital of Travelex, the payment for which will release of Travelex from the novated obligations by each holder.

Finally, at closing of the sale of the group, the holders will transfer the notes, other than the relevant notes, to UTX under the sale and purchase deed.

In May, B. R. Shetty and equity partners announced plans to acquire Travelex Holdings Ltd. through UTX Holdings Ltd., the company said.

Travelex is a London-based foreign exchange company.

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