LADBROKES 2022 5.125% BOND OFFER

[SaltySailor]

Anyone out there received the Consent Solicitation? Basically there seems to be 3 offers on the table namely:

Option 1:Vote in Favour of the Proposals.
Option 2: Vote against the Proposals.
Option 3: Abstain.

If you elect for Option 1 and the Proposals are approved, you will be eligible to receive a Consent Fee of 30 pence for every GBP100 nominal of Bonds held.

All a bit confusing. Anyone able to explain in layman's terms what is going on and if I opt for Option 1, which would result in some cash, albeit small, does this mean I still own the bonds and they run and payout as normal?

[Alaric]

Anyone out there received the Consent Solicitation?

This is the solicitation in question.
http://www.londonstockexchange.com/exch ... 31678.html

The context seem to be this paragraph.

On 22 December 2017, the Boards of GVC and Ladbrokes Coral Group plc ("Ladbrokes" and, together with GVC, the "Enlarged Group") announced that they had reached agreement on the terms of a recommended offer by GVC to acquire the entire issued and to be issued ordinary share capital of Ladbrokes (the "Acquisition").

The action on the Bonds is thus part of the box ticking that needs to take place to give Bondholders continued rights in the enlarged group.

Reading on though, if the Bondholders decline consent, the Bonds are paid off. Admittedly that's at 101, but that's below the current market price.

The Issuer considers that the completion of the Acquisition would constitute a Change of Control (as such term is defined in the Trust Deeds) and that Noteholders would have the right under the relevant Conditions to require the Issuer to redeem the relevant Notes at a price of 101 per cent. of their nominal amount plus accrued interest (or as more fully set out in the relevant Conditions). The Issuer is therefore soliciting a one-time waiver of the Change of Control covenant which would otherwise give Noteholders the right to require the Issuer to purchase or redeem their Notes at such price upon completion of the Acquisition.

[SaltySailor]

Many thanks for your comprehensive reply. I think it is therefore Option 1 for me!

[Shinyuk]

Thanks Alaric for the clarification and Salty Sailor for initiating.

[1adbr0ke5]

Thank you Alaric for your good explanation. Am I right to assume that the maturity dates of the two Ladbrokes bonds cannot be changed, even under new management? (Forgive me please for my simple question).

[Alaric]

Am I right to assume that the maturity dates of the two Ladbrokes bonds cannot be changed, even under new management?

I don't think anything in the document mentions a change to the maturity date, but that's not to rule it out entirely. There will be lots of small print, some of which may detail circumstances where the issue can be redeemed early or late. One of them is where it doesn't get the bond holders to consent to the change of Company.

[1adbr0ke5]

Thank you for your quick response - I shall consent and hope that they get a majority for Option 1.