Electricidad de Caracas Finance gets consents needed to amend 10¼% notes

By Angela McDaniels

Tacoma, Wash., March 25 - C.A. La Electricidad de Caracas said its subsidiary, Electricidad de Caracas Finance BV, had received tenders and consents for $244.3 million, or 93.96%, of its $260 million 10¼% senior guaranteed notes due 2014 as of 5 p.m. ET on March 24, the consent deadline.

The consents will allow the company to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default. The amendments will become operative once the company accepts the tendered notes for payment.

Electricidad de Caracas Finance began the consent solicitation and tender offer for the notes on March 7. The tender offer will expire at midnight ET on April 8.

For each $1,000 principal amount of notes, the tender payment will be the present value on the settlement date of $1,051.25 plus the present value of all scheduled interest payments to the earliest redemption date - based on the yield to maturity of the 3 3/8% Treasury due Oct. 15, 2009 plus 50 basis points, calculated at 2 p.m. ET two business days before the expiration date - minus accrued interest to the settlement date.

The company will also pay accrued interest to the settlement date, and noteholders who tendered by the consent deadline will receive an early consent payment of $20 per $1,000 principal amount.

Noteholders who tender must consent to the amendments and vice versa.

The offer is conditioned on the receipt of sufficient financing.

ABN Amro Bank NV (212 409-7530) is the dealer manager, and D.F. King & Co., Inc. (800 829-6551 or 212 269-5550) is the information agent.

Electricidad de Caracas is a Venezuelan utility company and a subsidiary of AES Corp.

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