Let's see the solution from the Towkay's team...
F&N WRAPS UP BOND COURTSHIP WITH 4 AYES, 2 NAYS
Holders of Fraser and Neave's (F&N) 3.15 per cent notes due 2018
agreed yesterday to amend the terms of their bonds, leaving just
two unpersuaded debt series to deal with ahead of a planned split of
the property and beverage company.
F&N also agreed to pay an early‐acceptance fee to all bondholders
who accepted its offers at similar mee?ngs two weeks ago, even if
they did not meet the early‐bird deadline, "as a gesture of goodwill".
At a bondholders' mee?ng yesterday, investors of the 2018 notes
agreed to allow F&N to split off and list its property business, Frasers
Centrepoint Ltd (FCL), without triggering a technical default. They
also agreed to give F&N a call op?on to buy back the bonds at par
plus half the coupon and accreted interest.
The owners of F&N's $108.25 million of 5.5 per cent notes due 2016
and $200 million of 6 per cent notes due 2019 had rejected the deal
two weeks ago; holders of the $150 million of 3.62 per cent notes
due 2015, $50 million of 2.54 per cent notes due 2015 and $220
million of 2.48 per cent notes due 2016 approved it.
F&N will now have to decide how to deal with the bondholders who,
by rejecting the deal, appeared to be calling F&N's bluff of a possible
strategic default. If it chose to default, F&N could suffer
consequences elsewhere, but would not have to pay bondholders as
much.
"Now that the approval of this series of bondholders has been
obtained, the F&N board should try its level best to work out an
amicable solution as soon as possible to resolve the deadlock
involving the two other series of bondholders who had earlier
rejected the offer," corporate lawyer Robson Lee said. "Certainty on
the proposed divestment of F&N's property business is important for
investors who intend to trade on F&N's shares."
Ref:
http://remisiers.org/cms_images/research...g_Buzz.pdf
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