A statement Monday morning:
CATTLES PLC
£400,000,000 7.125% bonds due 2017, ISIN: XS0308397149 (the “Bonds”), issued pursuant to a Trust Deed dated 5 July 2007 (as amended from time to time) (the “Trust Deed” between Cattles plc (the “Issuer”) and HSBC Trustee (C.I.) Limited
Coupon due 5 July 2009
The Board of the Issuer wishes to inform the holders of the Bonds that it will not make payment of the coupon due on 5 July 2009 in accordance with the provisions of the Trust Deed. The Issuer continues to be in constructive discussions with all of its finance providers and will provide a further update shortly.
And from the bonds’ prospectus:
8. EVENTS OF DEFAULT
If any of the following events occurs and is continuing, then the Trustee at its discretion may and, if so requested in writing by holders of at least one quarter in principal amount of the outstanding Bonds or if so directed by an Extraordinary Resolution, shall (subject, in the case of the happening of any of the events mentioned in Conditions 8.2 to 8.13 below, to the Trustee having certified in writing that the happening of such event is in its opinion materially prejudicial to the interests of the Bondholders and to the Trustee having been indemnified and/or provided with security to its satisfaction) give written notice to the Issuer declaring the Bonds to be immediately due and payable, whereupon they shall become immediately due and payable at their principal amount together with accrued interest without further action or formality (each such event being an “Event of Default”):
8.1 Non-payment
the Issuer fails to pay any amount of principal in respect of the Bonds on the due date for payment thereof or fails to pay any amount of interest in respect of the Bonds within three days of the due date for payment thereof, provided always that in either case such failure does not occur because of technical or administrative reasons;
Whoops. That trustee again is HSBC.
Of interest now will be whether it is too late to secure that elusive creditor standstill agreement — which could give Cattles a bit of breathing space in terms of repaying its debt and refinancing. Cattles has been in talks to renew a £500m syndicated loan by July 14.
In any case, the damage done to the bonds, which unlike Cattles shares appear to still be trading, looks like this:
Related links:
Cattles bond-related documents - The Long Room
Abattoir finance — FT Alphaville
Cattles misses bond payment - FT
Cattles close to securing creditor standstill - FT
