Impsat again extends tender offer, consent solicitation for 6% convertibles

By Jennifer Chiou

New York, April 25 - Impsat Fiber Networks, Inc. said it once more prolonged the tender offer and solicitation of consents and waivers for its series A 6% senior guaranteed convertible notes due 2011 and series B 6% senior guaranteed convertible notes due 2011, this time to 5 p.m. ET on May 1.

As of April 24, the previous deadline, holders of $66,684,964, or about 99%, of the series A notes and $25.374 million, or 99%, of the series B notes tendered their securities.

It had been previously extended from April 17, April 10, April 3, March 27 and March 13.

Impsat previously said that as of April 17, it had received tenders from holders of $66,433,749, or about 98%, of the series A notes and the same amount of series B notes.

Because the offer was extended beyond March 15, it was amended so that noteholders will receive the normal interest payment on the notes. In addition, the purchase price for each $1,000 principal amount of notes will be $1,010.00 plus an amount equal to $0.17 for each day after March 15 up to but excluding the purchase date.

Because of this additional amendment, noteholders will receive $1,017.99 per $1,000 principal amount of notes tendered. The previous tender considerations were $1,016.80, $1,015.61, $1,014.42, $1,012.04 and $1,010.00 per $1,000 principal amount of notes.

If the offer is further extended, noteholders will receive an additional $0.17 per $1,000 principal amount of notes per day up to but excluding the payment date.

The offer is being held in connection with the company's Oct. 25 agreement to be acquired by Global Crossing Ltd. for $9.32 in cash per share of common stock.

The company is soliciting consents to eliminate certain restrictive covenants and events of default in the note indenture and is seeking waivers of its obligation to hold an offer to purchase the notes within 30 days of its acquisition by Global Crossing.

Impsat needs consents from holders of a majority of the notes and waivers from holders of at least two-thirds of the outstanding notes.

The tender offer is conditioned upon the consummation of the proposed merger. While satisfaction of the consent solicitation and waiver is not conditioned upon the closing of the tender offer, the proposed amendments and waivers will not become operative until the closing of the merger.

Goldman, Sachs & Co. (800 828-3182 or 212 357-0775) is dealer manager and solicitation agent, Georgeson Inc. (212 440-9800 for banks and brokers or 866 277-5068) is information agent and the Bank of New York is depositary agent.

Impsat is a Buenos Aires-based provider of private telecommunications network and internet services in Latin America.

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