Matel extends bid to amend Magyar Telecom notes, redeem via sale

By Susanna Moon

Chicago, Jan. 26 – Matel Holdings Ltd. extended the consent solicitation for the senior secured notes due 2018 issued by Magyar Telecom BV.

The deadline for submitting electronic instructions is now 12 p.m. ET on Jan. 31, extended from 12 p.m. ET on Jan. 26, according to a notice by Matel.

As announced Jan. 13, Magyar is seeking consents to a planned sale of the company and expects to redeem the notes using proceeds from the transaction.

Holders are being asked to approve the sale, to reduce the notice period to redeem the securities to four business days from 12 business days, to agree to the winding up of Magyar Telecom and to support related matters.

No consent fee is being offered.

The company expects to pay €123.7 per 100 units, made up of €107.2 of principal plus capitalized PIK interest, €1.7 of accrued interest and €14.8 of limited equity consideration from Matel Holdings Ltd.

The notes are part of the 150,051,000 of outstanding units made up of shares issued by Matel Holdings and senior secured notes due 2018 issued by Magyar Telecom.

Magyar Telecom expects to redeem the notes in the second half of February.

The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or invitel@lucid-is.com).

Based in Budapest, Hungary, Magyar Telecom offers telecommunications services to residential and business customers.

Matel, through its 49% holdings in Magyar Telecom, invests in telecommunication-related activities in Hungary. The company is based in London.

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