NRAM (formerly Northern Rock Asset Management) said today (Monday) that a meeting scheduled for 7 May in relation to the repurchase and redemption of a Eu2bn 3.875% 2020 covered bond is expected to be quorate as it has received votes representing two-thirds of the outstanding.

The UK institution on 30 March announced a liability management exercise whereby bondholders are asked to tender their bonds for repurchase and in the process approve an extraordinary resolution whereby NRAM will redeem any bonds outstanding after the exercise. Those having tendering their bonds by 17 April receive an early tender premium equivalent to 2 percentage points.

NRAM announced today that bondholders representing two-thirds of outstandings have voted and it will therefore proceed with a meeting on 7 May after on 30 April setting the purchase yield and purchase price – if the meeting had not been on track to be quorate then the timetable would have been pushed back.

Bondholders can still tender their bonds but they will not receive the early tender premium, nor will bondholders whose bonds are redeemed in the event that the extraordinary resolution passes.