13 Sep 2010 14:56
For immediate release 13 September 2010
Dignity Finance plc
Issue of Preliminary Prospectus by Dignity Finance PLC
On 26 August 2010, Dignity Finance PLC (the "Company") called a meeting of the holders of the £155,550,000 Class A Secured 6.310 per cent. Notes due 2023 (ISIN: XS0165707612) (the "Class A Notes") to be held on 17 September 2010 (the "Meeting"). Broadly, the purpose of the meeting is for the Company to obtain, by way of an Extraordinary Resolution of the Class A Noteholders, certain consents and waivers from the Class A Noteholders in order to facilitate a distribution to Dignity plc of part of the proceeds from any tap issue of the existing Class A Notes and £132,500,000 Class B Secured 8.151 per cent. Notes due 2031 (the "Class B Notes" and together with the Class A Notes, the "Secured Notes") and to effect certain structural amendments and administrative amendments (together the "Consent Solicitation").
In the event that the Extraordinary Resolution is passed the Company intends, subject to prevailing market conditions, to launch a tap issue of further Secured Notes.
As a result of the votes already made by Class A Noteholders, the Company believes that it is likely that the Consent Solicitation will be approved by the Class A Noteholders. Consequently, the Company has today issued a Preliminary Prospectus in respect of a potential issue of further Secured Notes.
It is the Company's intention to issue further Class A Notes with an outstanding nominal amount of up to £38.9 million and further Class B Notes with an outstanding nominal amount of up to £33.1 million. The actual proceeds raised from such further Secured Notes will depend on the market price and market conditions at the time of any such issue.
Any decision to issue further Secured Notes will be subject to market conditions prevailing at the time and the publication of a prospectus (as defined in Article 5.4 of Directive 2003/71/EC) by the Company. The Preliminary Prospectus is an advertisement and does not comprise a prospectus for the purposes of Directive 2003/71/EC. The Preliminary Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company.
There can be no guarantee that further Secured Notes will be issued and the votes described do not guarantee that the resolutions will be passed at the meeting of Class A Noteholders on 17 September 2010. The Company will make further announcements as appropriate.
For more information
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Dignity plc +44 (0) 121 354 1557