5th Apr 2006 07:00
Greene King PLC05 April 2006 5 April 2006 GREENE KING PLC Re-financing of Morland Debenture Greene King announces that it has decided to refinance its £25m Greene King7.75% 2027 debenture (the "Morland Debenture") (formerly and most commonlyreferred to as the Morland 2027). Rationale The Greene King Group currently has a range of debt financing in place,comprising a £600m securitisation completed in March 2005, bank facilities anddebentures. The repayment of this debenture would generate material benefits forthe Group by: • simplifying the Group's capital and accounting structures • focusing the Group's relationships with long-term bondholders around one issuing vehicle • enhancing the Group's financial flexibility for the future. Consent solicitation Accordingly, Greene King has published today a Consent Solicitation Documentcontaining proposals seeking the consent of the holders of the Morland Debentureto the redemption of the Morland Debenture for cash ("the Redemption Offer") atthe price stated therein. The Consent Solicitation Document may be obtained on request from The Royal Bankof Scotland plc who are acting as the Group's Consent Solicitation Agent. Proposed Terms of the Redemption Offer If the Redemption Offer receives consent of the requisite majority of holders ofthe Morland Debenture, all the holders of the Morland Debenture will receive anamount in cash which will be based on the yield to maturity of the relevantbenchmark security plus the Redemption Spread as set forth in the table below.In addition, holders of the Morland Debenture will have an opportunity toreceive an Early Solicitation Fee as set forth in the table. Redemption Pricing Table Debenture Nominal Benchmark Redemption Spread Early Solicitation Fee amount security (over relevant (% of the nominal benchmark security) amount of debentures) Morland 2027 £25m UKT 6% 2028 0.6% 3.5% ABI committee The terms of the Redemption Offer have been considered by a Special Committee ofthe ABI. The members of the Special Committee, representing approximately halfby nominal value of the Morland Debenture, have informed Greene King that theyfind the proposals acceptable, that they intend to vote in favour of theextraordinary resolution in respect of their holdings and that they will beinviting other members of the ABI to consider a similar course of action. Meeting A meeting is being convened on 27 April 2006 for the purposes of enabling theholders of the Morland Debenture to consider and, if they so wish, to vote topass the extraordinary resolution necessary to effect the redemption of theMorland Debenture. The deadline for submission of votes in order to qualify forthe Early Solicitation Fee is 5:00pm on 20 April 2006. Contact details Greene King plc 01284 763 222 Ian Bull, Finance Director The Royal Bank of Scotland plc (Solicitation Agent) All questions from bondholders should be directed to The Royal Bank of Scotlandplc. Andrew Burton 020 7085 8056 [email protected] Jackson 020 7085 4208 [email protected] Important Notice The contents of this press release have been prepared by and are the soleresponsibility of the Greene King Group. This press release does not constitutean offer to sell or the solicitation of an offer to buy securities of any memberof the Greene King group or any entity lending to any such member. Nothing inthis press release constitutes advice on the merits of buying, holding orselling a particular investment or exercising any right conferred by thesecurities described. Securities are not suitable for everyone. The value of securities can go down aswell as up. You should not deal in securities unless you understand their natureand the extent of your exposure to risk. You should be satisfied that they aresuitable for you in the light of your circumstances and financial position. Ifyou are in any doubt you should consult an appropriately qualified financialadvisor. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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