In March 2015, MPE Properties Ltd raised £1,050,000 under the terms of an MTN programme arranged by LGB.
The proceeds were used to purchase a factory in Northern Ireland that was accredited for the production of aircraft components. This was in conjunction with a private equity acquisition of the operating company. The transaction soon hit turbulence with an early sale of the business out of administration. LGB was involved in the negotiation of a lease with the new owner and also with the eventual sale of the property. Because of the difficult business environment in 2019 and 2020, the issue was extended until the sale of the property was completed on 30th October 2020.
It was necessary for noteholders to agree to a revision to the amortisation schedule of the issue upon the change of ownership of the operating company, but otherwise, they received interest payments at the scheduled rate of 10.5% p.a. until the original maturity date and then at 14.0% p.a. during the extension period. The successful outcome highlighted the resilience of the programme structure, with LGB acting on behalf of noteholders in its additional capacity as security trustee.
