ARA Asset gets needed consents to amend two perpetual securities

By Marisa Wong

Los Angeles, Nov. 19 – ARA Asset Management Ltd. said the extraordinary resolutions to amend two series of its perpetual securities passed at the noteholder meetings held on Nov. 18.

The company was soliciting consents to amend its S$300 million 5.65% series 002 subordinated perpetual securities (ISIN: SG7ND7000003) and S$350 million 5.6% series 004 subordinated perpetual securities (ISIN: SGXF15643061).

As a recap, the company asked holders to approve extraordinary resolutions under each series to amend the definition of change-of-control event and insert provisions relating to benchmark discontinuation and replacement.

According to Friday’s announcement, for the series 002 securities, holders of S$248.75 million, or 82.92%, of the outstanding principal amount voted at the meeting held at 3 a.m. ET on Nov. 18. A total of 248.75 million votes were cast, of which 201.75 million votes, or 81.11%, were cast in favor of the extraordinary resolution to amend the securities.

For the series 004 securities, holders of S$288 million, or 82.29%, of the outstanding principal amount voted at the meeting held at 4 a.m. ET on Nov. 18. A total of 288 million votes were cast, of which 239.25 million votes, or 83.07%, were cast in favor of the extraordinary resolution.

The quorum required at each meeting was two or more persons representing 75% of the relevant series. A majority of at least 75% of the votes cast had to be in favor of an extraordinary resolution in order for it to pass.

On Friday, the company said it will execute supplemental trust deeds to effect the proposed amendments.

The company expects to pay the consent fees on Nov. 25.

The company offered a 0.4% early consent fee to holders who delivered voting instructions by the early consent fee deadline on Nov. 9. Holders who delivered instructions by the consent expiration on Nov. 16 were eligible to receive a normal consent fee.

DBS Bank Ltd. (liabilitymanagement@dbs.com) and Oversea-Chinese Banking Corp. (liabilitymanagement-2@ocbc.com) are the solicitation agents.

Tricor Singapore Pte. Ltd. is the meeting agent.

ARA Asset previously noted that its S$300 million 5.2% subordinated perpetual securities (ISIN: SG7EB6000007) were not part of the consent solicitation.

The real estate asset manager is based in Singapore.

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