Invista Foundation Property Trust’s bondholders have voted against the company’s £55m bond buyback proposal.
The trust wanted to use surplus cash to buy back its listed, securitised debt. A month ago it launched a tender offer to buy back up to £55m of the £213.5m of bonds, which are held in the securitisation vehicle, Real Estate Capital Foundation. The price range was 65p-75p in the pound, which is above the 50p-65p price range at which the bonds have recently been trading on the market.
However, bondholders representing 72% of the bonds all voted against the trust’s proposal and the buyback will not take place.
A spokesman at Longbow REal Estate, whose clients voted against the proposals and promoted a no vote to other bond investors, saidi: 'As evidenced by both the turnout and 100 per cent “no” this was a particularly poorly construed proposal. The vote shows bondholders can be organised and active when in their interest to do so and bodes well for other situations where bondholders economic interests can be protected or enhanced.'