Marconi calls £195.5 million of senior notes, buys back £8.4 million

Pittsburgh, Aug. 17 - Marconi Corp. plc will redeem £195.5 million of its senior secured notes due 2008 for 110% of the principal amount of the notes plus 46 days interest accrued to the Sept. 1 redemption date, according to a company news release.

The mandatory partial redemption of the notes results from the gross cash proceeds from the sale of Marconi's Outside Plant and Power business, from release of cash collateral following the expiration of certain performance bonds and letters of credit and from a reduction in the amount of cash collateral held against certain bonds.

Similar to the previous partial redemptions, a pool factor will be applied to every holding, the release said. The company will announce details on the pool factor after the registrar has confirmed it.

Marconi also bought back £8.4 million of its senior notes for a total cash outlay, excluding interest and fees, of about £9.2 million in open market transactions, according to the release.

The company will have about £38 million of the notes outstanding after the Sept. 1 redemption and the recent buyback.

Marconi is a London-based global telecommunications equipment, services and solutions company.

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