Trustreet begins consent solicitation for 7½% notes

By Angela McDaniels

Seattle, Jan. 24 - Trustreet Properties, Inc. has begun a consent solicitation to amend the indenture governing its $300 million of 7½% senior notes due 2015, according to a company news release.

The offer will expire at 5 p.m. ET on Feb. 16.

The amendments are being sought in connection with the proposed acquisition of the company by General Electric Capital Corp.

The proposed amendments will eliminate substantially all of the restrictive covenants, including those limiting or conditioning Trustreet's mergers, consolidations and asset sales; reporting requirements; the requirement to offer to repurchase the notes upon a change of control; and non-payment events contained in the indenture.

The company needs consents from holders of a majority of the notes. Should the company receive the needed consents, General Electric Capital will fully and unconditionally guarantee all of Trustreet's payment obligations with respect to the notes.

The amendments, if consented to, would only become operative after General Electric Capital's proposed acquisition of Trustreet was completed.

The acquisition, however, is not conditioned upon the successful completion of the consent solicitation, and the companies plan to complete the proposed acquisition even if the consent solicitation is not successful, according to the release.

The acquisition remains subject to approval by Trustreet's common stockholders, who will meet on Feb. 22.

D.F. King & Co., Inc. (banks and brokers call 212 269-5550, all others call 800 697-6975) is the information and tabulation agent for the consent solicitation.

Trustreet Properties is an Orlando, Fla.-based real estate investment trust focused on the restaurant industry.

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