Telebras gets holder OK to not call debentures if acquired by Telemar Norte Leste

By Angela McDaniels

Tacoma, Wash., Dec. 18 - Brasil Telecom SA said the holders of its fifth issue of debentures approved an amendment of the indenture to include an exception to the rule of mandatory acquisition. The exception was sought in connection with the proposed sale of Telebras' equity control to Telemar Norte Leste SA.

Holders of 97.5% of the debentures approved the amendment at a general meeting on Wednesday, according to a 6-K filing with the Securities and Exchange Commission.

For its part, the company said it will give the debenture holders the option to put back the debenture the acquisition closes. It may also increase the interest rate to 140% of the daily average rate of the one-day Interbank Deposits, Extra-Group, plus 3.5% per year.

The debentures were issued in June 2006 and are the company's fourth public issue.

Telebras is a telecommunications services provided based in Brasilia.

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