Impsat once more extends tender offer, consent solicitation for 6% convertibles

By Jennifer Chiou

New York, April 4 - Impsat Fiber Networks, Inc. said it again prolonged the tender offer and solicitation of consents and waivers for its series A 6% senior guaranteed convertible notes due 2011 and series B 6% senior guaranteed convertible notes due 2011, this time to 5 p.m. ET on April 10.

It had been previously extended from April 3, March 27 and March 13.

As of April 3, Impsat said it received tenders from holders of $66,412,139, or 99%, of the series A notes and $25.374 million, or 99%, of its series B notes.

Because the offer was extended beyond March 15, it was amended so that noteholders will receive the normal interest payment on the notes and, thereafter, the purchase price for each $1,000 principal amount of notes will be $1,010.00 plus an amount equal to $0.17 for each day after March 15 up to but excluding the purchase date.

Because of this additional amendment, noteholders will receive $1,014.42 per $1,000 principal amount of notes tendered. The previous tender considerations were $1,012.04 and $1,010.00 per $1,000 principal amount of notes.

If the offer is further extended, noteholders will receive an additional $0.17 per $1,000 principal amount of notes per day up to but excluding the payment date.

As of March 13, Impsat had received tenders from holders of $66,295,984 of the series A notes and the same amount of series B notes received on April 3.

The offer is being held in connection with the company's Oct. 25 agreement to be acquired by Global Crossing Ltd. for $9.32 in cash per share of common stock.

The company is soliciting consents to eliminate certain restrictive covenants and events of default contained in the indenture governing the notes and is seeking waivers of its obligation to hold an offer to purchase the notes 30 days following its acquisition by Global Crossing.

Impsat needs consents from holders of a majority the notes and waivers from holders of at least two-thirds of the outstanding notes.

The tender offer is conditioned upon the consummation of the proposed merger. While satisfaction of the consent solicitation and waiver is not conditioned upon the closing of the tender offer, the proposed amendments and waivers will not become operative until the closing of the merger.

Goldman, Sachs & Co. (800 828-3182 or 212 357-0775) is dealer manager and solicitation agent, Georgeson Inc. (212 440-9800 for banks and brokers or 866 277-5068) is information agent and The Bank of New York is depositary agent.

Impsat is a Buenos Aires-based provider of private telecommunications network and internet services in Latin America.

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