Portugal Telecom extends early voting deadline for 6¼% notes

By Angela McDaniels

Tacoma, Wash., Feb. 24 - Portugal Telecom, SGPS SA extended the early voting deadline for its €400 million 6¼% notes due 2016 to coincide with the expiration deadline, noon ET on Feb. 26, according to a company filing with the London Stock Exchange.

A consent solicitation for the notes began Feb. 7. Prior to the extension, the early voting deadline was Feb. 21.

As previously reported, the company is also holding a consent solicitation for the €750 million 4 1/8% exchangeable bonds due 2014 issued by Portugal Telecom International Finance BV.

The company is asking noteholders to waive events of defaults that will be triggered due to its upcoming combination with Oi SA and to approve the following changes:

• Add a guarantee from Oi to both series of notes;

• Replace Portugal Telecom with PT Portugal SGPS SA as the issuer of the 6¼% bonds;

• Amend the exchangeables so that holders who exchange their bonds up to the completion of the combination will receive cash instead of shares, and after the completion of the combination, they will receive shares of Telemar Participacoes SA instead of Portugal Telecom shares; and

• Release Portugal Telecom and PT Comunicacoes, SA as keep well providers for the exchangeables.

The company will hold meetings on March 3 in Lisbon for the 6¼% notes and in London for the exchangeables.

The consent fee is 0.4% for holders of 6¼% notes.

For the exchangeables, the consent fee is 0.4% for holders who delivered their consents by the Feb. 21 early voting deadline and 0.15% for holders who deliver consents after the early deadline.

In order to form a quorum, at least half of the principal amount of the notes must be represented at the meeting. To pass, the measure requires votes from at least three-quarters of those represented.

The solicitation agents are Barclays Bank plc (contact liability management group at eu.lm@barclays.com or +44 0 20 3134 8515) and BofA Merrill Lynch (contact John Cavanagh at john.m.cavanagh@baml.com or +44 0 20 7995 3715 or contact Karl Bystedt Wikblom at karl.bystedtwikblom@baml.com or +44 (0)20 7996 0867).

The tabulation agent is Lucid Issuer Services Ltd. (contact Yves Theis/Thomas Choquet at pt@lucid-is.com or +44 0 20 7704 0880). The principal paying agent is Citibank, NA (ppapayments@citi.com or +3531622 2210).

Portugal Telecom is a Lisbon-based provider of telecommunications and multimedia services.

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