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REC Plantation Place just misses getting waiver from noteholders
By Angela McDaniels
Tacoma, Wash., Dec. 23 - REC Plantation Place Ltd. said the number of votes it received at a series of noteholder meetings on Dec. 23 were not enough to waive an ongoing event of default.
The company sought the waiver from the holders of five series of secured floating-rate notes due 2016. At least three-quarters of the votes cast needed to be in favor of the proposal in order for the waiver to be granted.
This requirement was met at the meetings for the holders of the company's £380 million class A notes, £58 million class C notes, £51.1 million class D notes and £19 million class E notes. It was not met, however, at the meeting for the holders of its £51.5 million class B notes. Holders of 73.8% of these notes voted in favor of the proposal.
The issuer plans to convene a second meeting of the class B noteholders to reconsider the proposal.
REC Plantation Place is a CMBS deal backed by a London office building. A reduction in the value of the property has resulted in the ratio of the loan amount to the property value exceeding the loan-to-value ratio covenant level of 82.14%.
The loan-to-value ratio has exceeded this limit since July 2008. As of Oct. 25, it was 94.8%.
The waiver would waive the current and any future loan-to-value event of default for 22 months from the date of the waiver until either Oct. 25, 2012 or the date on which the property is sold.
If the property is sold by Oct. 25, 2011, noteholders who voted in favor of the waiver will receive a waiver fee of 0.25% of par. If the property is sold between Oct. 25, 2011 and the end of the waiver period, the waiver fee will be 0.5% of par.
The consent solicitation agent is Brookland Partners LLP (44 0 20 7652 9664 or 44 0 20 7652 9661). The tabulation agent is Bondholder Communications Group (+44 0 20 7382 4580).
The issuer is based in St. Helier on the Channel Island of Jersey.
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