MasTec settles early tenders of 7 5/8% notes via 4 7/8% notes proceeds

By Toni Weeks

San Luis Obispo, Calif., March 18 - MasTec, Inc. said it has accepted the 7 5/8% senior notes due 2017 that were tendered by 5 p.m. ET on March14, the early tender deadline. As previously noted, holders had tendered $121,125,000, or 80.75%, of its $150 million outstanding principal amount of the notes by the early tender date.

Settlement for these notes was expected to occur March 18, according to a press release.

As noted before, MasTec also conducted a consent solicitation alongside the tender offer and received enough consents to amend the notes to eliminate substantially all of the restrictive covenants and related events of default. When the proposed amendments become operative, the time required to send a notice of redemption to holders will be shortened to three days from 30 days.

The company also announced it intends to call any outstanding notes that remain after the offer ends. The tender offer will continue until 11:59 p.m. ET on March 28. The offer began March 1.

As noted before, the total purchase price is $1,027.92 for each $1,000 principal amount of notes tendered by the early tender deadline. The total payout includes an early tender payment of $30.00 per $1,000 of notes.

Those who tender after the early tender date will receive the base payment of $997.92 per $1,000 of notes.

The company also will pay accrued interest to but excluding the payment date.

Tendered notes may no longer be withdrawn. Holders were not permitted to tender their notes without delivering consents or deliver consents without tendering their notes.

The tender offer is conditioned on obtaining financing, and the company announced it has closed its $400 million offering of 4 7/8% senior notes due 2023, the proceeds of which will be used to fund the tender offer, the subsequent redemption and the repayment of the company's outstanding balance under its existing credit facility. Any remaining proceeds of the new notes will be used for working capital and other general corporate purposes. Barclays, Morgan Stanley and SunTrust Robinson Humphrey were the joint bookrunning managers of the new notes offering.

Barclays (800 438-3242 or collect 212 528-7581) is the dealer manager. D.F. King & Co., Inc. (800 769-4414 or, for banks and brokers, 212 269-5550) is the tender agent and information agent.

The issuer is a Coral Gables, Fla., telecommunications and energy infrastructure company.

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