IPC prices tender offer for 11½% notes due 2009

By Jennifer Chiou

New York, Aug. 2 - IPC Acquisition Corp. said it will pay $1,082.51 for each $1,000 principal amount of its 11½% senior subordinated notes due 2009, including a $30.00 consent payment for those who tender before the consent deadline.

The consent deadline was 5 p.m. ET on July 8 and the offer expires at 10 a.m. ET on Aug. 5, unless again extended.

On July 27, the company extended its offer to Aug. 5 from 10 a.m. ET on Aug. 1.

As of Aug. 1, $144,525,000 or 96.35% of the notes had been tendered.

Pricing for holders who tendered their notes before the consent deadline will receive a purchase price determined by the yield to maturity of the 1 7/8% Treasury due Dec. 31 plus 50 basis points. At 2 p.m. on Aug. 2, the reference yield was 3.664%, resulting in a tender offer yield of 4.164%.

Investors will also receive accrued interest up to but not including the redemption date.

Those who do not tender their notes by the consent deadline will not receive the consent payment.

The tender offer must meet conditions that include the funding of a new senior credit facility.

IPC is soliciting consents for proposed amendments to the indenture, which would eliminate restrictive covenants contained in the indenture as well as certain covenants and events of default.

A valid tender is considered a consent.

Goldman, Sachs & Co. is the dealer manager and solicitation agent (800 828-3182 or call collect 212 357-7867). Global Bondholders Services Corp. is the information agent (866 924-2200).

New York-based IPC provides communications services.

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