Pacnet terminates tender offer for 9¼% notes due to market conditions

By Marisa Wong

Madison, Wis., June 26 - Pacnet Ltd. terminated its cash tender offer for any and all of its outstanding 9¼% senior secured guaranteed notes due 2015, according to Wednesday announcement.

The company said it terminated the tender offer and related consent solicitation after reviewing market conditions.

The tender offer began on June 10 and was scheduled to expire at 11:59 p.m. ET on July 8.

The company solicited consents from holders to amend the indenture governing the notes. The amendments would have eliminated substantially all of the restrictive covenants, some events of default and some other provisions in the indenture.

Holders who tendered their notes had to consent to the proposed amendments, and holders could not deliver consents without tendering their notes.

The company announced on Monday that 96.92% principal amount of the notes had been tendered as of 5 p.m. ET on June 21, the early consent payment deadline.

Holders who tendered their notes and delivered their consents to the proposed amendments by the consent payment deadline would have received the total consideration of $1,065, including an $18.75 early consent payment, for each $1,000 principal amount of notes.

Holders tendering after the early deadline would have received the tender offer consideration of $1,046.25 per $1,000 of notes.

The company would have also paid accrued interest to the applicable settlement date.

The company previously said it had the option of settling notes tendered by the early deadline on an early settlement date slated for July 3.

The tender offer and consent solicitation were conditioned upon the company receiving the necessary consents to amend the notes and completion of a debt offering, proceeds of which were be used to help fund the tender offer and consent solicitation.

As a result of the termination, all notes tendered in the offer will be returned promptly to holders, and no consideration will be paid to holders who tendered their notes, the latest announcement noted.

The company said it reserves the right to make a new tender offer at a later date but is under no obligation to do so.

DBS Bank Ltd. (attn.: DBS fixed income desk, +65 6878 7145, liabilitymanagement@dbs.com), Deutsche Bank AG, Singapore Branch (attn.: liability management group, +65 6423 5342, +44 207 545 8011, liability.management@db.com), Goldman Sachs (Asia) LLC (attn.: debt syndicate, +852 2978-2519; for Goldman Sachs & Co., attn.: liability management group, 800 828-3182, 212 357-0215) and Standard Chartered Bank (attn.: bond syndicate, +65 6557 8286, DCMSyndicateSG@sc.com) were the dealer managers.

Deutsche Bank Trust Co. Americas (877 843-9767 or DB.Reorg@db.com) was the depositary and information agent.

Pacnet is a telecommunications service provider with headquarters in Singapore and Hong Kong.

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