Brazil's Cemat and Celpa tender for 9½% note units

By Jennifer Chiou

New York, July 10 - Centrais Electricas Matogrossenses SA (Cemat) and Centrais Eletricas do Para SA (Celpa) announced the start of a tender offer for any and all of the units consisting of their 9½% notes due 2012.

The companies are also soliciting consents to amend the indenture to eliminate certain covenants and certain related events of default.

The early tender deadline is 5 p.m. ET on July 24. The offer ends at 5 p.m. ET on Aug. 7.

For each $1,000 principal amount of units, the company said that they will pay $1,065, which includes an early tender premium of $35.00 for those who tender by the early deadline.

Cemat and Celpa said that they will also pay accrued interest to the settlement date.

The offer is conditioned on tenders from holders of a majority of units as well as the execution of a supplemental indenture.

Merrill Lynch, Pierce, Fenner & Smith Inc. (888 654-8637 or call collect 212 449-4914) and Unibanco Securities Inc. (call collect 212 832-1700) are the dealer managers and solicitation agents. Global Bondholder Services Corp. (866 794-2200 or call collect 212 430-3774) is the depositary and information agent.

Cemat is an electricity company serving the state of Mato Gross, while Celpa serves the entire state of Para in Brazil.

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