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Published on 1/13/2017 in the Prospect News Emerging Markets Daily and Prospect News Liability Management Daily.

Magyar Telecom seeks consents for notes, expects redemption via sale

New York, Jan. 13 – Magyar Telecom BV is seeking consents to a planned sale of the company from holders of its senior secured notes due 2018 and expects to redeem the notes using proceeds from the transaction.

Holders are being asked to approve the sale, to reduce the notice period to redeem the securities to four business days from 12 business days, to agree to the winding up of Magyar Telecom and to support related matters.

The consents are being solicited under a written procedure that ends at 12 p.m. ET on Jan. 26, according to a notice from the issuer.

No consent fee is being offered.

Following a review of strategic alternatives, Magyar Telecom has agreed to sell all the shares of its operating companies to an affiliate of China-CEE Fund, an investment vehicle established by China Exim Bank in partnership with institutional investors.

The sale gives the operating companies an enterprise value of €202 million.

Magyar Telecom expects to use the net proceeds to redeem the notes. Remaining funds will be distributed to shareholders.

The company expects to pay €123.7 per 100 units, made up of €107.2 of principal plus capitalized PIK interest, €1.7 of accrued interest and €14.8 of limited equity consideration from Matel Holdings Ltd.

The notes are part of the 150,051,000 of outstanding units made up of shares issued by Matel Holdings and senior secured notes due 2018 issued by Magyar Telecom.

Magyar Telecom expects to redeem the notes in the second half of February.

The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or invitel@lucid-is.com).

Based in Budapest, Hungary, Magyar Telecom offers telecommunications services to residential and business customers.


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