Innova buys back 96.25% of 9 3/8% notes during tender offer

By Angela McDaniels

Seattle, April 28 - Innova, S de RL de CV repurchased 96.25% of its $300 million 9 3/8% senior notes due 2013 during a tender offer and consent solicitation that ended at 11:59 p.m. ET on Tuesday, according to a 6-K filing with the Securities and Exchange Commission.

The company will pay $1,123.29 per $1,000.00 principal amount of notes tendered, including a $20.00 per $1,000 consent payment that will be paid to all noteholders who tendered. Noteholders will also receive accrued interest up to but excluding the settlement date.

The payout is based on the yield to Sept. 19, 2008 - the earliest redemption date for the notes -discounted using the yield to maturity of the 3 1/8% Treasury due Sept. 15, 2008 and 75 basis points.

Pricing was calculated at 2 p.m. ET on April 21.

The tender offer and consent solicitation were extended from April 10 and March 27, respectively, when Innova did not receive enough consents to amend the indenture governing the notes. The amendments eliminate Innova's requirement to file reports and other information with the SEC.

The company also increased the size of the tender to all $300 million outstanding from $195 million originally.

The company said it is seeking to reduce its overall interest expenses.

The Mexico City provider of satellite television services will fund the offer, which began on March 14, with borrowings under two peso-denominated bank loans and cash on hand, according to the filing.

Citigroup Corporate and Investment Banking is the dealer manager and solicitation agent (800 558-3745 or call collect 212 723-6108). Global Bondholder Services Corp. is the information agent (866 470-3800 or call collect 212 430-3774).

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