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Oskar to redeem 7½% notes, MobiFon tenders for 12½% notes
New York, June 7 - Vodafone Group plc said Oskar Mobil as will redeem all its €325 million of 7½% first priority senior secured notes due 2011 and MobiFon SA has started a tender offer and consent solicitation for its $223 million of 12½% senior notes due 2010.
The action follows Vodafone's acquisition of 100% of Oskar and its increase of its stake in MobiFon to 99%.
Oskar will redeem 35% of its notes on July 7 at a price of €1,075 per €1,000 principal amount. The remaining 65% will be redeemed on July 8 using the make-whole provision at a price of 50 basis points over the yield to maturity of the Bundesobligation due Oct. 10, 2008 at 3:30 p.m. Frankfurt time on July 1.
In its offer, MobiFon is offering holders who tender by June 21 the sum of 35% of $1,125 per $1,000 principal amount and 65% of a price calculated using a yield of 50 basis points over the yield to maturity of the Treasury note due May 31, 2007 at 2 p.m. ET on June 20.
Holders who tender after June 21 will receive $20 per $1,000 less.
The tender ends at 5 p.m. ET on July 6.
Goldman, Sachs & Co. is dealer manager.
The tender is subject to at least 50% of the notes being tendered. If that threshold is reached, substantially all the restrictive covenants in the notes will be removed. If a response of 66 2/3% is achieved, a further covenant limiting the investment activities of MobiFon will also be removed.
MobiFon is also seeking to end the requirement that it report to the Securities and Exchange Commission.
Oskar is a mobile telecommunications company operating in the Czech Republic. MobiFon provides cellphone service in Romania.
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