Victoria Plc - comment

The 2028 bondholders have rejected the exchange offer from Victoria Plc, choosing not to accept the distressed offer to uptier the balance. Admittedly, we had expected the number of cross holders to ensure the 50% threshold was met. The Company maintains that “there may be more advantageous solutions available to the Company”. The exchange document did outline the possibility of uptiering the preferred equity above the 2028 bonds.

The original 2026 bonds, which were elevated and extended to 2031, have a springing maturity before the 2028s if the 2028s are not extended. The 2028 bondholders may feel everything should fall due in 2028, particularly if a recovery is in sight.