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Net Servicos de Comunicacao receives consents for 91.2% of Net Sul's 7% notes, floaters
New York, Sept. 26 - Net Servicos de Comunicacao SA announced wholly owned subsidiary Net Sul Comunicacoes Ltda. received consents for 91.2% of its 7% senior secured notes due 2009 and senior secured floating-rate notes due 2009.
The response was announced after a short extension in the consent deadline to 12 p.m. ET on Sept. 26, instead of 5 p.m. ET on Sept. 23.
As of Sept. 23, the company said it received the required consents to amend the notes' indentures, eliminating or modifying restrictive covenants and other provisions.
Net Sul needed consents from holders of at least two-thirds of its notes to amend the indenture and holders of 85% of the notes to release the collateral securing the notes. The consent solicitation does not depend on the release of the collateral.
Net Sul is offering a consent payment of $10.00 per $1,000 principal amount of notes multiplied by a scaling factor. Calculated as of Sept. 12, the scaling factor for each note was 0.92233, reflecting Net Sul's June 15 prepayments of $2,523,842.15 of 7% notes and $752,149.29 of floaters.
The solicitation is conditioned upon, among other requirements, Net Sul depositing in an escrow account a sum equal to the outstanding principal amount of the notes plus all accrued interest through the "vesting date," currently expected to be April 5, 2006.
Deutsche Bank Securities Inc. is the solicitation agent in (866 627-0391 or call collect 212 250-2955).
Global Bondholder Services Corp. is the tabulation agent and information agent (866 294-2200 or call collect 212 430-3774).
Based in Sao Paulo, Brazil, Net Servicos is a pay television operator.
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