GROUP FORMS TO PURSUE OPTIONAL REDEMPTIONS OF MAV 2 NOTES

Mar 04, 2011, 08:00 ET from Moelis & Company

TORONTO, March 4 /PRNewswire/ - A group of unaffiliated holders of "MAV 2" notes issued as part of the 2009 restructuring of the market for third party Asset Backed Commercial Paper (ABCP) in Canada has engaged Moelis & Company to serve as its financial advisor to pursue a transaction that would permit voluntary redemptions by any noteholder seeking to monetize its investment.

The goal of the transaction is to allow the proceeds from the assets collateralizing the notes to be distributed to redeeming noteholders on a pro rata basis, or provide a similar amendment of the MAV 2 vehicle, without affecting the rights or value of holdings of noteholders who wish to hold notes to maturity. 

Under the ABCP restructuring, approved by noteholders and sanctioned by the Ontario Superior Court of Justice, affected ABCP notes were exchanged for long term floating rate notes designed to generally match the maturities of the underlying assets. Assets were cross-collateralized and distributed into new trusts called Master Asset Vehicles (MAVs). MAV 2 notes comprised synthetic and traditional assets that were backed with margin call support to enhance the stability of the pooled assets.

The group of unaffiliated holders and its financial advisor make no assurances regarding the probability of success of any such transaction, and such transaction may be discontinued at any time with or without notice.

SOURCE Moelis & Company