Arqiva receives required noteholder, creditor approval of disposal

By Sarah Lizee

Olympia, Wash., June 3 – Arqiva Financing plc announced the results of the consent solicitation for its £350 million 4.04% notes due 2035 (ISIN: XS0895821055), its £400 million 4.882% notes due 2032 (ISIN: XS0895820834) and its £164 million 5.34% notes due 2037 (ISIN: XS1024447010).

As at the expiration time on 11 a.m. ET on May 28, valid voting instructions in favor of the company’s STID proposal representing £847,666,413, or 98.49%, of the bonds had been received.

The company also said that the required majority of qualifying secured creditors have voted in favor of the STID proposal. Creditors holding 95.75% of the outstanding principal amount cast their votes and 97.41% of the voted outstanding principal amount was voted in favor of the STID proposal.

As previously reported, Arqiva is proposing to sell its telecommunications towers business to Cellnex UK Ltd. In relation to this, the company has undertaken a corporate reorganization of the senior financing group, by separating its telecoms towers business from its other businesses and consolidating the tower assets into an existing entity within the senior financing group, Arqiva Services Ltd., and some subsidiaries of Arqiva Services.

On Oct. 8, Arqiva Holdings Ltd. entered into a share purchase agreement with Cellnex UK and has agreed, subject to the satisfaction of some conditions, to dispose of Arqiva Services and its subsidiaries at completion under the share purchase agreement. Any assets that are not tower assets will remain within the senior financing group after the disposal. One of the conditions to the disposal under the share purchase agreement is the passing of a resolution by Arqiva’s secured creditors approving the disposal. Therefore, the company launched an STID proposal to seek consents.

The issuer offered a 15 basis point instruction fee to holders who delivered voting instructions by 11 a.m. ET on May 20.

Banco Santander, SA (+44 7418 709 688, +44 7742 403 679, Tommaso.grospietro@santandercib.co.uk, adam.crocker@santandercib.co.uk) and Merrill Lynch International (+44 20 7996 5420, DG.LM-EMEA@bofa.com) are the solicitation agents.

Lucid Issuer Services Ltd. (+44 20 7704 0880, arqiva@lucid-is.com) is the tabulation agent.

The issuer is a Winchester, England-based provider of broadcast infrastructure.

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