Shaftesbury looking to change conditions of stock

The FTSE 250 company said the proposal, if approved and implemented, would permit Shaftesbury to redeem the stock in exchange for an issue of newly created longer-dated first mortgage bonds.

A cash alternative would be made available to all stockholders who cannot or do not confirm their eligibility to receive the first mortgage bonds.

Shaftesbury’s board said it expects to convene a meeting of stockholders to approve the amendment of the terms and conditions of the stock to include a new condition providing Shaftesbury with the ability to redeem the stock in full at the redemption price, prior to its final maturity date by either exchanging the stock for first mortgage bonds, or for cash.

The amendments would be effected by an extraordinary resolution, consisting of at least 75% of stockholders.

Shaftesbury said the Proposal has been considered by a special committee of the Investment Association at the request of Shaftesbury.

The members of the committee, who hold in aggregate approximately 82.6% of the stock have examined the proposal, and have informed Shaftesbury that they find the proposal acceptable.

Shaftesbury said the committee indicated they intend to vote in favour of the proposal.

“Long-term debt financing provides an efficient and effective method of funding for Shaftesbury, compatible with our long-established business model and portfolio of good quality assets, with strong income streams, in London's West End,” said finance director Chris Ward.

“The proposal, if implemented, would offer eligible stockholders the opportunity to benefit from an improved security and covenant package, modern contractual provisions and a current market coupon.”