The early redemption will permit the Company to redeem all of these CVRs at any time prior to March 31, 2015 at a price of $1.00 per CVR.
Each CVR holder delivering their consent prior to the February 27, 2015 expiration date will also receive an additional payment for granting their consent of $0.03 per CVR. If consents are received from at least a majority of the CVRs outstanding prior to the expiration date, the Company expects to amend the terms of the CVR Agreement to permit it to redeem the remaining CVRs (including CVRs of non-consenting holders) at any time prior to March 31, 2015 at $1.00 per CVR.
The Company reserves the right to terminate the consent solicitation, or alter any of the terms thereof, prior to the expiration date in its sole discretion.
Under the current terms of these CVRs, holders are entitled to receive up to $1.30 per CVR promptly following their October 1, 2017 maturity date, dependent upon the level of credit losses in a segment of the Company’s loan portfolio.
Based on the level of such credit losses to date, the Company currently anticipates that, absent the receipt of the early redemption, CVR holders are likely to receive the $1.30 per CVR maximum payment promptly following the maturity date.
