Lion announces consent solicitation for Excel Step 2.5% exchangeables

By Angela McDaniels

Tacoma, Wash., July 20 - Lion Diversified Holdings Bhd. said holders will be asked to vote on proposed amendments to the $132.11 million principal amount of 2.5% exchangeable bonds due 2012 issued by Excel Step Investments Ltd. at a meeting at 5 a.m. ET on Aug. 27 in London.

The bonds are exchangeable into ordinary shares of Parkson Holdings Bhd., according to a company news release.

The proposed amendments include:

• The removal of the Nov. 16, 2010 put option;

• A pro rata partial redemption of the bonds;

• An increase in the interest rate; and

• The removal of the exchange price reset provisions.

The first two amendments would be effective from the date that the supplemental trust deed is executed, and the second two would become effective when the partial redemption was made.

The company noted that the payment of the partial redemption amount will result in a decrease in the exchange premium for the option to exchange the bonds into ordinary shares of Parkson.

A consent fee will be paid to each bondholder who votes in favor of the changes.

Lion makes chocolate products, steel and electronic components and is involved in property development. The company is based in Kuala Lumpur, Malaysia.

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