Marconi to redeem some 10% notes

New York, Sept, 16 - Marconi Corp. plc said that it would redeem $103,195,433 (£64.6 million) of its 10% guaranteed junior secured notes due 2008.

Marconi, a London-based communications electronics company which emerged this past May from bankruptcy proceedings in the U.S. and the U.K., said the notes will be redeemed on Sept. 30 at 110% of their principal amount. Holders will also receive 60 days accrued interest up to the redemption date, plus any additional amounts as defined in the notes' indenture.

In line with the mechanism used for the previous partial redemption of the notes, which took effect on July 31, a pool factor (i.e. a pro ration arrangement) will be applied to every holding. Further details of the pool factor to be applied from the redemption date will be announced once the pool factor has been confirmed by the registrar.

When it emerged from bankruptcy, Marconi issued $717.1 million of the new notes, equivalent to £450 million. After taking into account the July 31 partial redemption, the latest transaction will further reduce the principal amount of notes outstanding to $317.6 million (£198.9 million).

The latest redemption is being funded from the proceeds of Marconi's previously disclosed sale of its remaining stake in Easynet Group plc, its entire stake holding in Gamma Telecom Holding Ltd. and the release of collateral following expiry of certain performance bonds and letters of credit.

The paying agent for the redemption will be The Bank of New York's office in London (call Emma Wilkes at +44 20 7964 7662). Bank of New York is also the registrar and the depositary for the transaction.

Primus to complete redemption of 11¾% notes

New York, Sept. 16 - Primus Telecommunications Group, Inc. (Caa3) said that it had given notice to the indenture trustee for its 11¾% senior notes due 2004 of its intent to redeem the remaining $33.6 million principal amount of the notes on Oct. 17. The company said that the notes will be redeemed at par plus accrued interest to the date of redemption.

As previously announced, Primus, a McLean, Va.-based telecommunications company, said on Aug. 7 that it would redeem $10 million of the 11¾% notes at par plus accrued interest up to the redemption date of Sept. 15 - the latest in a series of recent transactions in which it had been buying back its junk bonds at various points in recent months.

On Sept. 4, Primus said that that it planned to redeem its remaining 11¾% notes with $43.6 million of the proceeds from its planned offering of $75 million convertible senior notes, which also was to include a $15 million greenshoe (the size of the convertibles offering was subsequently raised; on Sept. 10, Primus announced the pricing of $110 million of new 3¾% convertible senior notes due 2010).

The company also said it would use remaining proceeds to repay or repurchase other long-term obligations and for working capital and general corporate purposes.

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