Oi announces closing of rights offering and recovery settlement date

By Caroline Salls

Pittsburgh, July 26 – Oi SA, Portugal Telecom International Finance BV (PTIF) and Oi Brasil Holdings Coöperatief UA closed on a pre-emptive rights offering of 68,263 new shares and 5,197 warrants on Wednesday, according to a news release.

In addition, the issuers announced that the closing date for the settlement of a qualified recovery will be July 27.

Oi said the qualified recovery will consist of $1,653,557,000 principal amount of new notes, 302,846,268 new American Depositary Shares (ADSs), 23,250,281 of PTIF-held ADSs, 23,295,054 of new American Depositary Warrants (ADWs) and $124,837.89 in cash.

As a result, qualified holders will receive for each $1,000 of bondholder credits accepted in accordance with previously announced settlement procedures $195.61 of new notes, 35.82 ADSs representing 179.08 new shares, 2.75 ADSs representing 13.75 PTIF-held shares, 2.75 ADWs representing warrants to acquire 13.78 common shares of Oi to be issued in the form of ADSs and $0.01 in cash.

Qualified holders that did not validly participate and surrender their notes in accordance with the settlement procedures will only be entitled to receive a default recovery.

Oi is a Rio de Janeiro-based telecommunications service provider. It filed for Chapter 15 bankruptcy on June 21, 2016 in the U.S. Bankruptcy Court for the Southern District of New York under case number 16-11791.

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