RCS - Linklease Finance - Notice to Noteholders

Avis BudgetAnnouncement

20/12/2023 18:45

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RNS Number : 5273X  Linklease Finance PLC  20 December 2023

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.

 

20 December 2023

 

NOTICE TO NOTEHOLDERS

 

LINKLEASE FINANCE PLC

(Incorporated in England and Wales with registered number 11663405)

 

to the holders of those of the Series 2018-LL1 notes issued by the Issuer on
19 December 2018 with

ISIN: GB00BGWL1326

(the "Noteholders" and the "Notes", respectively)

Unless otherwise defined in this Notice, capitalised terms used in this Notice
shall have the meanings ascribed to them in the Trust Deed dated 19 December
2018 (as supplemented, restated or amended from time to time) between the
Issuer and Note Trustee (the "Trust Deed").

Potential Events of Default under the Loan Agreement

The Issuer hereby confirms to Noteholders that Mercury Equipment Rental LLC
and Mercury Car Rental LLC (together, the "Borrowers") have failed to pay
interest due up to and including 19 December 2023 to the Issuer (as lender) in
an amount of US$717,129.94 pursuant to the terms of the Loan Agreement. Should
this non-payment continue for a period of three Business Days from 19 December
2023, an Event of Default under Condition 13(h) of the Notes will occur.

Additionally, the Issuer hereby confirms to Noteholders that the Borrowers
have failed to repay the Loans due for repayment on 19 December 2023 to the
Issuer (as lender) in an amount of US$31,960,000.00 pursuant to the terms of
the Loan Agreement.  Should this non-payment continue for a period of three
Business Days from 19 December 2023, an Event of Default under Condition 13(h)
of the Notes will occur.

Potential Events of Default under the Notes

The Issuer hereby notifies Noteholders that, without payment of interest from
the Borrower to the Issuer pursuant to the terms of the Loan Agreement, the
Issuer was unable to pay its coupon due on the Interest Payment Date falling
on 19 December 2023 in an amount of US$717,129.94. Should this continue for a
period of 14 days from 19 December 2023 an Event of Default under Condition
13(a) of the Notes will occur.

Additionally, the Issuer hereby notifies Noteholders that, without repayment
of the Loans by the Borrowers to the Issuer pursuant to the terms of the Loan
Agreement, the Issuer was unable to redeem the Notes due for redemption in
respect of Series 2018-LL1 on 19 December 2023 for the nominal amount of
US$31,960,000.00.  Should this continue for a period of 7 days from 19
December 2023 an Event of Default under Condition 13(a) of the Notes will
occur.

Communication from the Borrowers

On 20 December 2023, the Issuer received from the Borrowers the following
communication:

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

Mercury Equipment Rental LLC/Mercury Car Rental LLC

(the "Borrower")

Office 102, Plot 247-394 Tasaheel Building

Amman Street

Al Qusais, PO Box 88533

Dubai

United Arab Emirates

To: LINKLEASE FINANCE PLC

1 Bartholomew Lane

London

EC2N 2AX

BY EMAIL ONLY

Date: 20 December 2023

Dear Sirs,

LINKLEASE FINANCE PLC - EVENT OF DEFAULT AND PROPOSAL TO REVISE TERMS

We refer to:

(a)  Series 2018-LL1 being up to US$50,000,000 of 9% secured medium term
notes due 2023, with ISIN: GB00BGWL1326 ("Series 2018-LL1") issued on 19
December 2018 by Linklease Finance Plc (the "Issuer"); and

 

(b)  the Loan Agreement dated 19 December 2018 between the Issuer (as lender)
and Mercury Equipment Rental LLC and Mercury Car Rental LLC (together, the
"Borrower") in respect of Series 2018-LL1 (the "Loan Agreement").

Pursuant to the terms of the Loan Agreement the Borrower was obliged to pay to
the Issuer (as lender) interest in the amount of US$717,129.94 and principal
of US$31,960,000.00 by 19 December 2023. We confirm that neither the interest
payment or the principal has to date not been paid by the Borrower - and a
deferment will be sought via a proposal. A proposal is being prepared and will
be sent shortly.

Yours sincerely,

for and on behalf of

Mercury Equipment Rental LLC/Mercury Car Rental LLC

 

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

 

Noteholder Contact

Queries regarding the circumstances set out in this announcement may be
addressed to the Calculation Agent:

ZigZag Management Experts LLC

Unit No:423 DMCC Business Centre

Level No 5 Jewellery & Gemplex 2

Dubai

United Arab Emirates
info@zigzag-me.com (mailto:info@zigzag-me.com)

Ref: 2018-LL1

This notice is given by the Issuer.

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