International Power tenders, seeks consents for 7¼% notes due 2017

By Susanna Moon

Chicago, Sept. 12 - International Power Finance (2010) said it began a tender offer and consent solicitation for its outstanding €250 million 7¼% senior secured notes due 2017 guaranteed on a senior basis by International Power plc.

Holders may deliver their consents without tendering their notes, but they may not tender notes without delivering consents.

The offer is conditioned on receiving consents from holders of a majority of the outstanding notes.

Pricing for the notes will be set using the interpolated mid-swap rate plus a fixed spread of 35 basis points at 9 a.m. ET on Sept. 26. The hypothetical total payment will be €1,266.83 per €1,000.00 principal amount of notes tendered by noon ET on Sept. 26, the early tender date.

For each €1,000.00 principal amount, the total hypothetical purchase price consists of a tender payment of €1,231.83 plus an early tender premium of €30 and a consent fee of €5.

Holders who tender their notes and deliver their consents after the early tender date will receive only the tender payment of €1,231.83 per €1,000.00 of notes.

There is €247,224,000 of the notes outstanding.

The tender offer and consent solicitation will end at 5 p.m. ET on Oct. 11. Tendered notes may be withdrawn by the early tender deadline.

Settlement for early tendered notes is slated for Oct. 1. Settlement for notes tendered after the early deadline will be on Oct. 16.

The issuer is soliciting consents to amend the notes indenture to eliminate the section on reports to holders, according to a company press release.

Adoption of the proposed amendments requires the consent of holders of a majority of the outstanding principal amount of notes.

Deutsche Bank AG, London Branch (attn.: liability management group, +44 0 20 7545 8011, or email liability.management@db.com) and HSBC Bank plc (attn.: liability management group, +44 0 20 7992 6237 or email liability.management@hsbcib.com) are the dealer managers.

Deutsche Bank AG, London Branch (attn.: trust and securities services, fax +44 0 20 7547 5001, phone + 44 0 20 7547 5000 or email xchange.offer@db.com) is the tender and tabulation agent.

International Power is a London-based independent power generation company.

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