Brazil-based Oi’s fifth issue subordinated debentures terminated early

By Marisa Wong

Morgantown, W.Va., April 28 – The trustee of Oi SA’s fifth issue subordinated non-convertible debentures declared the early termination of the outstanding debentures, effective April 27, according to a notice.

The outstanding principal amount of these debentures is estimated to be R$1,520,794.

According to the notice, Oi was not in compliance with a financial covenant related to leverage. As a result, the company convened a general meeting on April 15.

Due to the lack of quorum at the first meeting, a second meeting was scheduled for Wednesday, but no debenture holder was present, triggering the early termination.

The company will pay the updated nominal unitary amount of the outstanding debentures and accrued remuneration, calculated on a pro rata temporis basis from the date of the immediately preceding payment date to the effective payment date, which is three business days after the early termination date, or May 2.

The company said that the early termination of the outstanding debentures does not, and will not, trigger a cross-default of any of its financial debts, either domestic or international, given the small outstanding principal amount of the fifth issue debentures.

In addition, the company said the early termination of the fifth issue debentures, as with the early termination of its ninth issue debentures, will not affect its ability to continue to provide services and supply products with the best technology and the highest quality standards.

Oi is a Rio de Janeiro-based telecommunications service provider.

© 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.