Transener receives tenders for 69.4% of listed notes, 94.9% of unlisted notes by early deadline

By Laura Lutz

Washington, Dec. 1 - Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener SA announced early results in its tender offer for its outstanding listed Regulation S notes due 2016, outstanding restricted notes due 2016, definitive notes due 2016 and unlisted Regulation S notes due 2016.

By the early tender deadline at 5 p.m. on Nov. 30, the company had received tenders for $31,323,808, or 69.4%, of its outstanding listed notes and $8,647,868, or 94.9%, of its outstanding unlisted notes.

As of Nov. 20, holders had tendered $21.17 million, or 46.91%, of the listed Regulation S and restricted notes and $6.42 million, or 70.44%, of the definitive notes and unlisted Regulation S notes.

When the offer was announced, the company had outstanding $38,898,946 of listed Regulation S notes due 2016, $6,237,895 of restricted notes due 2016, $466,101 of definitive notes due 2016 and $8,647,868 of unlisted Regulation S notes due 2016.

After an increase on Nov. 21, for each $1,000 principal amount of notes, the company will pay $850.00 multiplied by a scaling factor, which as of Dec. 15 will equal 0.9750. The scaling factor was previously 0.9875.

The consideration includes an early tender premium of $20.00 multiplied by the scaling factor for holders who tendered by the early tender deadline.

Noteholders will also receive accrued interest up to but excluding the settlement date.

On Nov. 21, the company also extended the early tender deadline to 5 p.m. ET on Nov. 30 from Nov. 21, the proxy delivery deadline to 5 p.m. ET on Dec. 7 from Nov. 24, and the tender offer expiration to 5 p.m. ET on Dec. 15 from Dec. 7.

The company is soliciting proxies for amendments to the indentures to eliminate substantially all of the restrictive covenants and certain related provisions.

Those who tender must vote in favor of the proposed amendments.

Following the early tender deadline, tenders and proxies may no longer be revoked.

The offer is conditioned upon the receipt of the necessary proxies to adopt proposed amendments, the company said.

The company had called noteholders meetings for Nov. 30 to vote on the proposed amendments. As of the record date, 5 p.m. ET on Nov. 24, there was no quorum for each of the notes. As a result, the company has called a second meeting for each of the notes on Dec. 14, at 8 a.m. ET for the listed notes and at 10 a.m. ET for the unlisted notes.

Deutsche Bank Securities Inc. (866 627-0391 or call collect 212 250-2955) and Citigroup Global Markets Inc. are joint dealer managers and solicitation agents. Global Bondholder Services Corp. is the information agent and depositary (866 294-2200).

Transener is a Buenos Aires-based electric company.

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