Becton Property Group, advised by Freehills, has announced the signing of an Implementation Deed to implement a capital restructure involving certain debt for equity transactions with its major creditors.
The capital restructure proposal involves an inter-conditional restructure of debts owed to BOS International (advised by Blake Dawson's Martin Coleman, Corey Lewis and Charles Driscoll), the liquidated Australian Capital Reserve Ltd (advised by Baker & McKenzie) and holders of listed Becton notes (advised by Minter Ellison).
Under the capital restructure proposal, the $150 million senior debt owed to BOS International will be restructured such that $22 million of the debt will be converted into covenant light, interest capitalising debt and $33 million will be converted into preferred equity securities issued by a subsidiary trust (Preferred Securities).
Each Preferred Security is exchangeable into a number of fully paid Becton units (with an increasing exchange ratio with the passing of time) or redeemable in certain circumstances.
The remaining $95 million "senior" debt tranche will be extended to 31 March 2013.
ACR and holders of listed Becton notes will receive new Becton stapled units / options in exchange for their debt currently owed to them.
The capital restructure is conditional on, among other things, approval of Becton unit holders and note holders with general meetings expected to be held in late May 2011.