McLaren launches modified Dutch auction for two series of notes

Chicago, April 29 – McLaren Holdings Ltd. subsidiary McLaren Finance plc launched a modified Dutch auction for up to a total of £85 million from two series of notes, according to an announcement document.

The company is offering to buy notes from the £370 million of 5% senior secured notes due 2022 (ISINs: XS1577956359, XS1577956516) and the $350 million 5¾% senior secured notes due 2022 (Cusips: 65489DAA2, G65309AA7, G5956FAA0).

The purchase price range is £970 to £1,012 for each £1,000 of 5% sterling notes and $970 to $1,014 for each $1,000 amount of dollar notes.

The purchase price excludes interest to the settlement date which will also be paid.

The indenture governing the notes requires the company to make a headquarter asset disposition offer upon the consummation of an asset disposition in relation to the headquarter assets, the rationale for the offer. On April 29, McLaren conducted a sale-leaseback transaction where it sold its headquarters to Global Net Lease for £170 million and agreed to a 20-year lease.

The purchase price will be determined after the expiration of the offer. It will be determined by determining the lowest price that will allow McLaren to purchase a total amount of notes equal to £85 million.

Noteholders can either submit competitive offers or non-competitive offers.

Competitive offers will include a purchase price for the notes that the noteholder will accept.

Non-competitive offers will not include a purchase price.

Priority in the acceptance of offers will start with non-competitive offers and then move to competitive offers with a lower price than the purchase price and then competitive offers with a purchase price that equals the purchase price.

Should a noteholder specify a lower purchase price than the final determined purchase price, the notes will be purchased at the higher, final determined purchase price.

The offer is subject to proration.

The offer expires at 5 p.m. ET on May 28.

Results, with the purchase price, will be announced on June 1.

Settlement is scheduled for June 4.

Morrow Sodali Ltd. (203 609-4910, +44 20 7355 0615, +852 2319 4130, +44 20 8089 3287 or mclaren@investor.morrowsodali.com, https://bonds.morrowsodali.com) is the information and tabulation agent.

The automotive manufacturer is based in Woking, England.

© 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.