COLT Telecom gets consents needed to amend 7 5/8% notes

By Angela McDaniels

Seattle, Dec. 8 - COLT Telecom Group SA executed an amendment to the indenture governing COLT Telecom Group Ltd.'s 7 5/8% notes due 2009, according to a company news release.

The company began a consent solicitation for the notes on Sept. 25 under which noteholders who consented will receive £1.50 per £1,000 principal amount of notes.

The amended and restated indenture changes the covenants to reflect the new group corporate structure following the corporate reorganization completed earlier this year by substituting parent company COLT Telecom Group SA for the issuer COLT Telecom Group Ltd. in most of the covenants, excluding the payment covenant and certain technical covenants.

This makes most of the covenants in the indenture applicable to the enlarged group of the parent company and its subsidiaries, rather than just COLT Telecom Group Ltd., and results in all current subsidiaries of the parent company becoming restricted subsidiaries for the purposes of the covenants in the indenture.

In connection with these changes to the indenture, COLT Telecom Group SA said it provided a guarantee of COLT Telecom Group Ltd.'s obligation to pay principal and interest under the notes.

The amended and restated indenture also amended the covenant limiting restricted payments to add an additional £30 million general "basket" carve-out from the prohibition on restricted payments.

COLT Telecom is a London-based provider of data, voice and managed services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.