Multicanal extends solicitation, tender offer

New York, June 13 - Multicanal SA said that it extended its previously announced consent solicitation and concurrent cash tender offer for its notes and bank debt to 5 p.m. ET on June 20 from June 13.

Covered by the solicitation and the tender are Multicanal's 9¼% notes due 2002, 10½% notes due 2007, 13.125% series E notes due 2009, series C 10½% notes due 2018 and series J floating-rate notes due 2003. The tender offer also applies to the Buenos Aires, Argentina company's bank debt.

Buenos Aires-based Multicanal said that as of 5 p.m. ET on June 12, holders of $245.4 million, or 46.5% of the existing debt (notes plus bank debt) had either tendered or agreed to participate in the consent solicitation - down from the $251.5 million (47.7%) recorded on May 29 and announced on May 30, when the consent solicitation and tender offer were last extended.

Holders of approximately $145.3 million principal amount of the existing debt (notes plus bank debt) had agreed to the consent solicitation and holders of approximately $100.1 million had tendered under the cash tender offer as of June 12, versus $141.9 million and $109.6 million, respectively, as of May 29.

Under the tender offer, Multicanal is offering to buy up to $100 million of its existing debt - notes or bank debt - at $300 per $1,000 principal amount in cash.

The solicitation is for consent for powers of attorney in favor of an attorney-in-fact to execute an acuerdo preventive extrajudicial (APE). On approval of the APE by the bankruptcy court, holders who accept the solicitation will receive for each $1,000 principal amount of existing debt, at the holder's option either $1,000 principal amount of 10-year step-up notes or $315 principal amount of either 7% seven-year notes or seven-year floating rate. Holders will also receive 598 shares of class C common stock.

Multicanal is seeking to exchange approximately $100 million principal amount of its existing debt for $100 million of 10-year notes, $157.4 million principal amount of its existing debt for $102.3 million of its seven-year notes (either fixed or floating) and capitalize approximately $167.4 million principal amount of existing debt.

Multicanal will not pay any accrued and unpaid interest (including default interest and additional amounts, if any) on existing debt that is exchanged or capitalized under the APE.

The information agent for the cash tender offer and the APE solicitati on is D.F. King & Co., Inc. (212 493-6920); the depositary is JPMorgan Chase Bank (212 623-5162).

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