Acindar extends 11¼% '04 notes and dollar-debt tender offer

New York, May 19 - Acindar Industria Argentina de Aceros SA said that it is extending its previously announced cash tender offer for its 11¼% notes due 2004 and certain of its U.S. dollar- denominated indebtedness.

The tender offer, which had been scheduled to expire at 12 p.m. ET on May 16 will now expire at 12 p.m. ET on May 28, subject to possible further extension. The company also said that the previously announced early tender deadline, which had also been scheduled to expire on May 16, will also now expire at 12 p.m. ET on May 28.

The company said that as of the old deadline on May 16, holders of approximately $39.2 million aggregate principal amount of notes and dollar debt had tendered them in the cash tender offer.

As previously announced, the Buenos Aires, Argentina-based steel company on April 10 announced a tender offer to purchase its 11¼% notes and the dollar-denominated debt, including debt held by the International Finance Corp. and commercial banks, and said that it would spend up to $20 million in the offer (this amount was subsequently raised to $30 million).

It initially set an expiration deadline for the offer for 5 p.m. ET on May 9 and an early tender deadline of April 25, with both deadlines subsequently extended several times.

The company said that the tender offer would be structured as a modified dutch auction, under which holders of notes or debt may make offers within a price range from $450 to $650 per $1,000 principal amount. Tender prices within the price range would have to be in multiples of $10.

Acindar said that it would accept notes and dollar debt validly tendered in the offer in the order of the lowest to the highest tender prices, specified by holders within the price range, and would select the lowest price that would enable the company to purchase notes and dollar debt for its planned total expenditure.

In addition, Acindar offered an early tender payment for holders validly tendering notes or dollar debt prior to the early tender deadline and not withdrawing them, saying that should the offer be completed and the notes and dollar debt purchased, such holders would receive an extra $50 per $1,000 principal amount.

The company said that notes and dollar debt tendered in the offer could not be withdrawn unless Acindar extends the expiration date until after June 9, or makes an amendment to the offer that is adverse to any holder that has tendered notes or dollar debt in the offer.

Acindar will not pay any accrued and unpaid interest on any notes or dollar debt that are tendered for purchase.

Acindar said it will pay soliciting dealers named in a letter of transmittal a retail solicitation fee of $5 per $1,000 of notes or dollar debt tendered by the holder and accepted in the offer. It said that as of April 7, the principal amount of notes and dollar debt outstanding was $277 million, which includes $100 million of notes and $177 million of dollar debt.

Acindar said it was involved in discussions with an ad hoc committee of its creditors about a restructuring of its debt. The tender offer would take place prior to the proposed restructuring.

On April 28 and again on May 2, Acindar extended the tender offer deadline and also extended the early tender deadline so that it would coincide with the offer expiration deadline,

On May 2, it said that it had increased the total amount it plans to spend on the offer to $30 million from the originally announced $20 million. The company said that the offer amount was increased to permit a greater number of Acindar's creditors to participate in the tender offer and to provide the company with increased flexibility in conducting such offer.

Credit Suisse First Boston LLC (call 212 538-8474 or 800 820-1653) is dealer manager for the offer. The depositary is JPMorgan Chase. Georgeson Shareholder (banks and brokers call 212 440-9800, others in North America call 800 368-2245, others in Europe and Latin America call +39 06 42 171 777) is information agent.

Telecom Argentina increases price in tender offer, extends deadline

New York, May 16 - Telecom Argentina STET-France Telecom SA said it and its subsidiary Telecom Personal SA increased the amount they are offering to pay in their cash tender offers for their debt and extended the deadline.

The purchase price range has been increased to 48% to 55% of outstanding principal amount, up from 43.5% to 50%. The total the companies are willing to spend is now $310 million for the Telecom Argentina and $55 million for the Telecom Personal offers.

Under the new terms, the offer will reduce Telecom Argentina's debt by between $564 million and $646 million or 23% to 26%. Telecom Personal's debt would be reduced by $100 million to $115 million or 16% to 18%.

The tender now runs through 4.00 p.m. ET on June 2.

As previously announced, the companies began a modified dutch auction tender offer on April 16.

The Buenos Aires, Argentina company said the tender offer is the first step in its plans to restructure its debt.

The tender applies to the company's $200 million series C medium-term notes due 2002, $100 million series E medium-term notes due 2005, €250 million series 1 medium-term notes due 2003, €190 million series 2 medium-term notes due 2004, €200 million series I medium-term notes due 2004, €250 million series K medium-term notes due 2002, ITL400 billion series F medium-term notes due 2007 and ITL400 billion series H medium-term notes due 2008.

The company said that on the expiration date it will pay all accrued interest up to June 24, 2002 and 30% of the accrued interest up to Dec. 31, 2002. The company will pay the accrued interest on all the notes, whether tendered or not. It will not pay interest after Dec. 31, 2002.

Morgan Stanley & Co. Inc. and MBA Banco de Inversiones SA are acting as dealer managers for the tender offers with MBA acting in Argentina only.

The information agent in the U.S. and Argentina is Georgeson Shareholder Communications Inc. (banks and brokers cal 212 440-9800, others 866 216-0459, in Argentine call 0800 555-4288, 0800 222-1288 or 0800 288-5288 followed by the U.S. toll free 866 216-0459) and the information agent in Europe is GSC Proxitalia SpA (39 06 4217-1777 or toll free in Italy 800 18 99 23).

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