RCS - Linklease Finance - Updated Proposal for LL1 USD

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03/06/2024 11:15

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RNS Number : 8530Q  Linklease Finance PLC  03 June 2024

Mercury Equipment Rental LLC and Mercury Car Rental LLC

(the "Borrowers")

 

Mercury Equipment Rental LLC and Mercury Car Rental LLC - Updated Proposal to
Amend & Extend

03 June 2024

Linklease Finance PLC Series 2018-LL1 9% Bonds Due 2023

(ISIN: GB00BGWL1326)

(the "Bonds")

On 31 January 2024, Linklease Finance PLC (the "Issuer") published a proposal
from the Borrowers to amend the terms of the Loan Agreement and the Notes.
However, the ongoing negotiations concerning the implementation of the
proposal has prevented the unwinding of any assets. Given this current
position, the Borrowers believe that a revised date change is required to
allow for payment obligations to be met. Please see below for full details of
the Updated Proposal:

******************

Updated Proposal for Coupon and Principal Payment deferment for: Series
2018-LL1 being up to USD$50,000,000 of 9.00% secured medium term notes due
2023, with ISIN: GB00BGWL1326

("Series 2018-LL1") issued on 19 December 2018 (the "Bonds").

 

Dear Sirs,

 

Due to the ongoing negotiations concerning the implementation of the proposal,
released on 31(st) January 2024 - Linklease Finance PLC - Proposal for LL1 USD
- 17:09:38 31 Jan 2024 - News article | London Stock Exchange
(https://www.londonstockexchange.com/news-article/market-news/linklease-finance-plc-proposal-for-ll1-usd/16312805)
(the "Proposal"), Mercury Equipment Rental LLC and Mercury Car Rental LLC (the
"Borrowers") hereby confirm that, jointly, they are requesting to update the
Proposal (the "Updated Proposal") to allow the delay to the final coupon and
principal payment of Series 2018-LL1 from the advised 30 September 2024 to 31
December 2024. The delay is required as the original Proposal has not
progressed, thus preventing a manageable timeframe to unwind any assets.

 

Below is a side-by-side compassion summary of the original Proposal and the
Updated Proposal:

 

 31 January Proposal Terms                                                        03 June Updated Proposal Terms
 A deferment of Series 2018-LL1 coupon, due on 19 December 2023, until 30         A deferment of Series 2018-LL1 coupon, due on 19 December 2023, until 31
 September 2024 and no further coupon payments                                    December 2024 and no further coupon payments
 A deferment of Series 2018-LL1 redemption, due on 19 Dec 2023, until 30          A deferment of Series 2018-LL1 redemption, due on 19 Dec 2023, until 31
 September 2024                                                                   December 2024
 Other than as required to allow the Issuer to pay the above, the removal of      Unchanged
 all further interest payment obligations of the Borrower (including default
 interest)
 A new simplified asset security release process (to be discussed and agreed      Unchanged
 with the Trustee and Security Agent) to be introduced. The Borrowers, believe
 the current sale/release process may negate some opportunity to take advantage
 of spot sales. Currently, the Borrowers need to obtain approval to mandate the
 releases of each asset pledge. The Borrowers would like to make a request to
 propose an alternative process in this regard
 Upon above obligations being met for each series, the orderly closure of the     Unchanged
 MTN programme

 

The Borrowers understand the impact that the amendments set out in this
Updated Proposal may have, however, they believe that the revised date change
is required to allow for payment obligations to be met.

 

Please note, at no point does this Updated Proposal change the extent of the
security provision provided to the Noteholders, versus what Noteholders
currently retain under the transaction and security documents of Series
2018-LL1. Should disposal of assets occur quicker than the end date of the
Updated Proposal, then the Borrower shall settle obligations earlier.

 

Please refer to the original Proposal from 31 January 2024 for the full
details and background.

 

We look forward to your support of the above Updated Proposal.

 

Yours faithfully,

 

Authorised Signatory of:

Mercury Equipment Rental LLC/Mercury Car Rental LLC

 

*******************

Information regarding the Updated Proposal

Queries regarding the Updated Proposal should be made promptly by email to the
Borrowers at the following address: info@zigzag-me.com
(mailto:info@zigzag-me.com) .

Noteholders should take and rely on their own independent legal and financial
advice in respect of the Proposal.

This notice is given by the Borrowers.

 

IMPORTANT INFORMATION

 

This notice contains important information that is of interest to the
registered and beneficial owners of the subject securities. If applicable, all
depositories, custodians and other intermediaries receiving this notice are
requested to expedite the re-transmittal to beneficial owners of the
securities in a timely manner.  If noteholders are in any doubt as to the
action they should take, if any, they should immediately consult their own
independent professional advisers authorised under the financial services and
markets act 2000 (if they are in the United Kingdom) or another appropriately
authorised independent financial adviser and take such other advice from their
own professional, tax and legal advisers as they deem necessary.

 

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