ONO starts change-of-control tender for 14% notes, says bigger payout likely for waiting

New York, Dec. 5 - ONO Finance plc said it has begun a change-of-control tender offer for its dollar- and euro-denominated 14% notes due 2011 - but told investors that if they wait for an expected redemption they will receive more money.

In the current offer, the company will pay 101% of par plus accrued interest, according to a 6-K filing with the Securities and Exchange Commission.

But ONO said that under the terms of the credit facility at Cableuropa, SAU, which guarantees the notes, ONO is required to redeem the notes by Dec. 31, 2006. The securities become callable in February at a price of 107% of par plus accrued interest.

ONO said it currently intends to redeem the notes but added that it cannot give an assurance that it will do so.

The change-of-control offer is required because of alterations to the shareholders of ONO Finance's parent Grupo Corporativo ONO, SA on Nov. 4.

Expiration for the offer is 5 p.m. ET on Jan. 26.

ONO, a Madrid, Spain-based broadband service provider, currently has €158.038 million and $58.29 million of the 14% notes outstanding.

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