Intu Properties seeks approval to amend notes due 2028, 2033, 2035

By Sarah Lizee

Olympia, Wash., Aug. 4 – Intu Properties plc unit Intu (SGS) Finance plc set Aug. 26 meetings for holders of its £450 million 3 7/8% notes due 2028 (ISIN: XS0904228557), £350 million 4 5/8% notes due 2033 (ISIN: XS0904228987) and £350 million 4¼% notes due 2035 (ISIN: XS1131914811) to consider a proposal to implement amendments and waivers under the notes, according to London Stock Exchange notices.

The issuer is seeking approval of requests made by the issuer and Intu (SGS) FinCo Ltd. in respect of certain amendments and waivers.

Intu is not offering a consent fee.

Teleconference meetings will take place at 5 a.m. ET for the 2028 notes, 5:10 a.m. ET for the 2033 notes and 5:20 a.m. ET for the 2035 notes.

The Covid-19 pandemic resulted in the shopping centers, land and properties owned by the obligors operating on a semi-closed basis until June 15, with only essential stores such as supermarkets and pharmacies remaining open prior to that date. The level of rent collected from the properties was significantly reduced at the last quarter day being June 24.

The speed of recovery as the United Kingdom comes out of lockdown remains unclear, the issuer said.

“Despite continued discussions between the parent and its creditors, insufficient alignment and agreement was achieved on the proposed terms of standstill-based agreements,” the issuer said.

As a result, on June 26, Intu Properties made an application for James Robert Tucker, Michael Robert Pink and David John Pike of KPMG LLP to be appointed as joint administrators to the group. With effect from June 26, listing and trading of Intu Properties’ ordinary shares on the London Stock Exchange and the Johannesburg Stock Exchange were suspended.

Intu Retail Services Ltd. will provide operating services to the group through a transitional services agreement for a maximum six-month period, starting from June 26.

Should each noteholder extraordinary resolution be passed, the amendments and waivers will be implemented by way of a master amendment agreement.

Intu has engaged with secured participants, including both banks and noteholders, holding about 67.38% of the outstanding principal amount of all qualifying debt to discuss the proposals. The company said the participants indicated that, subject to client and other approvals, they intend to vote in favor of the proposals.

The obligors and the issuer have entered into a forbearance letter with the initial authorized facility agent and an ad hoc group of holders of the notes together representing 67.38% of all qualifying debt.

The British REIT focuses on shopping center management and development.

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