Telcordia tenders for floaters due 2012 and 10% subordinated notes

By Jennifer Chiou

New York, April 9 - Telcordia Technologies Inc. announced the start of a cash tender offer for any and all of its $555 million of senior secured floating-rate notes due 2012 and any and all of its $254.68 million of 10% senior subordinated notes due 2013.

Telcordia is also soliciting consents to certain proposed amendments to each of the indentures to, among other things, eliminate substantially all of the covenants, certain repurchase rights and certain events of default and related provisions.

The consent deadline is 5 p.m. ET on April 22.

For each $1,000 principal amount, the company will pay $1,007 for the floaters and $1,021.25 for the 10% notes, both including a $50.00 consent payment for those who tender by the early deadline.

Holders will also receive accrued interest.

The offer is set to end at midnight ET on May 6.

Telcordia added that it intends to fund the offer using a combination of the proceeds from a contemplated private placement of new senior secured notes and/or borrowings under a proposed new senior secured credit facility and from cash on hand.

The company is seeking tenders from holders of at least a majority of the notes.

The information agent is D.F. King & Co., Inc. (212 269-5550 or 800 290-6431). Credit Suisse Securities (USA) LLC is the dealer manager and solicitation agent (800 820-1653 or call collect 212 325-5912).

Telcordia Technologies is a Piscataway, N.J., telecommunications software company.

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