Lunar Funding V Plc - Notice of Mandatory Redemption Event

RNS Number:

Lunar Funding V plc

7 February 2012

THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF NOTEHOLDERS. IF NOTEHOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE, THEY SHOULD SEEK THEIR OWN FINANCIAL AND LEGAL ADVICE IMMEDIATELY FROM THEIR STOCKBROKER, SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT FINANCIAL OR LEGAL ADVISER.

LUNAR FUNDING V PLC

(the Issuer)

(a public company incorporated with limited liability under the laws of Ireland (Xetra: A0Q8L3 - news) )

NOTICE to the holders of the

Lunar Funding V PLC Series 2005-16 EUR 4,250,000 Secured Asset-Backed Notes due 2053 ISIN: XS0238196355 (the "Notes")

linked to USD 5,000,000 Class D Secured Floating Rate Credit-Linked Notes due 2053

(the "Class D Notes") of Marc CDO I plc

Re: Notice of Mandatory Redemption Event

We refer to the Notes and the related issue memorandum dated 16 December 2005 (the "Issue Memorandum").

Capitalised terms used but not defined herein shall have the meaning ascribed thereto in the Issue Memorandum.

Notice is hereby given that a Related Agreement Termination (as defined in Condition 8(c)(iii) of the Conditions of the Notes) and an Underlying Asset Acceleration (as defined in Condition 8(b)(ii) of the Conditions of the Notes) has occurred in respect of the Related Agreement. These events constitute a Mandatory Redemption Event in respect of the Notes in accordance with Condition 8(c) (Mandatory Redemption Events) of the Notes.

Condition 8(c) (Mandatory Redemption Events) of the Notes, as amended by paragraph 55 of the Terms of the Notes, provides inter alia that the Notes shall be redeemed in whole but not in part at the applicable Final Redemption Amount, on the date of the occurrence of such event or as soon as is practicable thereafter taking into account the timing of liquidation of the Charged Property subject to availability of net proceeds of liquidation or realisation of the Charged Property and subject to payment of all claims ranking prior to those of the Noteholders (the "Early Redemption Date").

For the purposes of paragraph 53 of the Terms of the Notes, the Final Redemption Amount in respect of each Note will be its pro rata share of the "Party A Final Exchange Amount" (as defined in the Related Agreement).

The Related Agreement provides that the "Party A Final Exchange Amount" will be the EUR equivalent of the "Party B Final Exchange Amount" for the Final Exchange Date (being the Termination Date of the Related Agreement) converted by reference to the USD/EUR Currency Swap Rate.

The Related Agreement further provides that the "Party B Final Exchange Amount" will be an amount in USD equal to the principal amount paid in respect of the redemption of the Class D Notes on the Final Exchange Date (before taking into account any redemption on such day) multiplied by the Relevant Proportion.

We refer to an announcement made on 9 December 2011 by Marc CDO I plc ("Marc") advising that an Early Termination Date had occurred with respect to the Class D Notes, obliging Marc to redeem, inter alia, the Class D Notes on 22 December 2011 (the "Redemption Date"). Marc also advised that there were insufficient proceeds available to make payment of any amount on, inter alia, the Class D Notes and accordingly, its obligation to pay and the right of the Noteholders to receive any further amounts in respect of, inter alia, the Class D Notes will be extinguished on the Redemption Date.

We hereby give you notice in accordance with Condition 8(c) of the Notes that 22 December 2011 was the Early Redemption Date in respect of the Notes.

We hereby notify you that, for the purposes of paragraph 53 of the Terms of the Notes, the Final Redemption Amount in respect of each Note is zero.

For the avoidance of doubt, the Issuer will not make payment of any amount on the Notes on the Early Redemption Date and its obligation to pay and the right of the Noteholders to receive any further amounts in respect of the Notes will be extinguished on the Early Redemption Date.

The Issuer will therefore, following the Early Redemption Date, arrange for the Notes to be cancelled.

The Issuer will also request the Irish Stock Exchange to delist the Notes upon their cancellation.

This Notice is given by:

LUNAR FUNDING V PLC

5 Harbourmaster Place

IFSC

Dublin 1

Ireland

Dated 7 February 2012

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.