| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Marconi Corp. > News item |
Marconi amends debt restructuring
By Carlise Newman
Chicago, March 18 - Marconi plc said it has completed final modifications to its planned debt restructuring.
The London-based telecommunications equipment company says it now expects to complete the restructuring by May 15, 2003.
Marconi has proposed further modifications to the structure of the junior and limited recourse notes, first announced Aug. 28, 2002, and additionally modified Dec. 31, 2002. As a result of the changes, Marconi will increase the face value of the junior notes and it will no longer issue limited recourse notes to creditors as part of the restructuring. The company will issue two series of notes as opposed to three, with the junior notes having a larger principal amount than previously proposed.
The junior notes will have an aggregate principal amount of $488 million (£304 million), which is comprised of $300 million plus the dollar equivalent of £117 million (previously £250 million). The notes will be denominated in dollars as opposed to euros previously.
The interest rate remains unchanged at either a 12% if paid in kind or 10% if paid in cash, but it will now accrue from May 1. In addition, interest on the senior notes will accrue from May 1.
Under the new terms, creditors will receive a total of:
* £340 million cash; the euro equivalent of £450 million in principal amount of senior secured notes due April 2008, denominated in euro and/or dollars, with interest payable quarterly in cash at a rate of 8% accruing from May 1;
* $300 million plus the dollar equivalent of approximately £117 million in junior secured notes due Oct. 2008 denominated in dollars, paying interest at a rate of 10%, or in kind, at a rate of 12% accruing from May 1;
* 99.5% of Marconi Corp. plc's stock.
© 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.