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Primus launches private exchange offer for 13% notes, 14¼% notes
By Jennifer Chiou
New York, June 7 - Primus Telecommunications Group, Inc. announced the start of private offers to exchange new 10% senior secured notes due April 15, 2017 for any and all of the $129,968,000 of 13% senior secured notes due 2016 issued by the company and Primus Telecommunications Canada Inc. and the $90 million of 14¼% senior subordinated secured notes due 2013 issued by Primus Telecommunications IHC, Inc.
The company and its subsidiaries, including Primus Telecommunications Holding, Inc., the issuer of the new notes, announced plans for the exchange on May 17 after entering into a support agreement with a group of investors holding roughly 70% of the 13% notes.
Primus is offering $1,170 principal amount of new notes for each $1,000 principal amount of 13% notes and $1,012.50 of the new notes for each $1,000 of the 14¼% notes.
The company is also soliciting consents from holders of the 13% notes to amend the indenture and release the collateral. It needs tenders from holders of at least two-thirds of the notes. Holders may not tender the notes without delivering consent, and there is no separate consent payment.
The offers and solicitation will end at 9 a.m. ET on July 5.
Primus is seeking tenders from holders of at least 75% of the 14¼% notes.
Under the previously announced support agreement, Primus Telecommunications IHC said that it would call for redemption all 14¼% notes that are not tendered in the exchange offer. Certain holders agreed to purchase up to an aggregate of $15 million of the new exchange notes in connection with the redemption.
On May 18, the company said it received no tenders under its excess cash flow offer to purchase up to 5,200 units representing $5.2 million of the 13% notes. The offer began on April 20.
Primus is a communication solutions provider based in Mclean, Va.
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