Ipiranga gets required consents, extends consent deadline for 7 7/8% notes

By Jennifer Chiou

New York, March 23 - Companhia Brasileira de Petróleo Ipiranga announced it received the required consents and extended the consent deadline in a tender offer for its 7 7/8% step-up notes due Aug. 1, 2008.

As of 5 p.m. ET on March 22, the company said it received tenders from holders of $72.1 million or 53.9% of the $133.715 million of notes.

The company also said it extended the consent deadline to 5 p.m. ET on March 28 from March 25.

Ipiranga added it intends to enter into a supplemental fiscal agency agreement for proposed amendments that would, among other things, eliminate substantially all of the restrictive covenants and certain events of default.

Payment in the tender will be set using a spread of 75 basis points over the 2 5/8% U.S. Treasury note due May 15, 2008. Ipiranga will also pay accrued interest up to but excluding the settlement date.

The tender runs through 5 p.m. ET on April 11.

The company said it will use R$300 million of proceeds from a planned offering of R$450 million of debentures. Ipiranga began the offer on March 8.

Banc of America Securities LLC is the dealer manager (888 292-0070 or call collect 704 388-9217). The information agent is D.F. King & Co., Inc. (800 859-8511 or call collect 212 269-5550).

The Rio de Janeiro, Brazil-based company refines and distributes petroleum products.

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