eircom Funding calls remaining 8¼% notes; Valentia Telecom calls remaining 7¼% notes

By Laura Lutz

Des Moines, Aug. 22 - eircom Funding issued a redemption notice to holders of its remaining dollar- and euro-denominated 8¼% senior subordinated notes due 2013.

At the same time, Valentia Telecommunications Ltd. called its 7¼% senior notes due 2013 that are still outstanding.

The redemption will be on Sept. 21.

For its dollar notes, eircom will pay the present value of the notes' 104.125 redemption price on their first call date of Aug. 15, 2008 plus interest payments through that date, discounted using the yield on the comparable Treasury plus 50 basis points.

The formula for eircom's euro notes is the same except the discount rate is Bunds plus 50 basis points.

Valentia will pay the present value of the 103.625 redemption price at the first call date of Aug. 15, 2008 plus interest payments through that date, discounted using Bunds plus 50 basis points.

eircom originally issued $250 million and €285 million of the 7¼% notes and Valentia €550 million of the 8¼% notes.

On Aug. 1, BCM Ireland Holdings Ltd. announced that in a cash tender offer and consent solicitation it received tenders for €541 million or 98.3% of Valentia's 7¼% notes, €280 million or 98.3% of eircom's 8¼% notes and $249 million or 99.6% of eircom's 8¼% notes by the early tender deadline.

The Bank of New York is the principal paying agent for the redemptions. Other paying agents are The Bank of New York (Luxembourg) SA and AIB/BNY Fund Management (Ireland) Limited.

Dublin-based eircom Group, plc is a telecommunications provider. Eircom Funding and Valentia are owned by eircom Group.

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