Valentia, eircom extend consent solicitation

New York, Feb. 10 - Valentia Telecommunications and eircom Funding said they have again extended their consent solicitation to amend the indentures for Valentia's €550 million 7¼% senior notes due 2013 and eircom's €285 million 8¼% senior subordinated notes due 2013 and $250 million 8¼% senior subordinated notes due 2013.

The solicitation will now expire at 5 p.m. ET Feb. 20, pushed back from 5 p.m. ET Feb. 13 and 5 p.m. ET Feb. 4 originally.

The companies said they are in discussions with certain bondholders about possible revisions and improvements to the proposed amendments for which they are seeking consents.

Valentia and eircom announced on Jan. 22 that they had begun the consent solicitation.

The proposed amendments are to give Valentia greater flexibility to pay dividends in the event of an initial public offering of its equity securities or to pay dividends or make other payments to its parent, Valentia Holdings Ltd., or another direct or indirect parent company of Valentia in order to fund the payment of dividends to the holders of the parent company's ordinary shares, preference shares or other capital stock in the event of an initial public offering of equity securities of Holdings or any other parent company.

Valentia added that although Holdings is considering an initial public offering, no decision has been made by the board of directors.

The timing of any IPO will depend on market conditions and other factors, the Irish company added.

The amendments are subject to consents from holders of a majority of the outstanding principal amount of the senior notes and the senior subordinated notes.

Valentia and eircom will make consent payments of €2.50 for each €1,000 principal amount of senior notes, $3.75 for each $1,000 principal amount of dollar-denominated senior subordinated notes and €3.75 for each €1,000 principal amount of euro-denominated senior subordinated notes.

Goldman Sachs International (+44 (0) 20 7774 9054, attention Credit Capital Markets or 800 828-3182, attention Credit Liability Management) and Citigroup (attention Liability Management Group at +44 (0) 20 7986 8969 or collect at 212 723-6106 or 800 558-3745) are solicitation agents. The tabulation agent is The Bank of New York (212 815-5788).

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