CBL Corporation Ltd (CBL) has received noteholder approval for the right to redeem all outstanding 8.25% April 2019 Notes on or before 30 November 2016 at a redemption price of $107 plus accrued interest.
The resolution was passed with 97% voting in favour. The company’s press release can be viewed here.![External link - opens in a new window External link - opens in a new window](https://thewire.blob.core.windows.net/web/images/default-source/default-album/external_link.jpg?sfvrsn=97adb45a_6)
We believe that the proposal is attractive, with a substantial premium offered to noteholders. The $107 offer represents a $4 premium above the $103 option on the first call date of 17 April 2017. Under the resolution, if exercised on the last date possible the return would be 11.63%, compared to 4.90% if redeemed at the first call date.