Electricidad de Caracas Finance sets payout in tender for 10¼% notes

By Laura Lutz

Des Moines, April 7 - Electricidad de Caracas Finance BV announced pricing for the previously announced tender offer and consent solicitation for its $260 million of 10¼% senior guaranteed notes due 2014.

The company said it will pay $1,167 for each $1,000 principal amount of notes, a tender offer yield of 2.307%.

In addition, holders who tendered by the consent deadline, 5 p.m. ET on March 24, will also receive a consent payment of $20 per $1,000 principal amount.

All tendering noteholders will receive accrued interest to the settlement date.

The payment was based on 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 on April 4 - minus accrued interest to the settlement date.

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.

As of 5 p.m. ET on April 4, the company said it had received tenders for $245.5 million, or 94.4%, of the notes. That is up from $244.3 million, or 93.96%, that were tendered by the consent deadline on March 24.

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.

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

The offer is conditioned on the receipt of sufficient financing. Settlement is expected on April 10.

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 Finance is a subsidiary of C.A. La Electricidad de Caracas, a Venezuelan utility company and a subsidiary of AES Corp.

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