Electricidad de Caracas subsidiary tenders for 10¼% notes

By Laura Lutz

Des Moines, March 7 - C.A. La Electricidad de Caracas announced that its subsidiary, Electricidad de Caracas Finance BV, has launched a cash tender offer and consent solicitation for all of its 10¼% senior guaranteed notes due 2014.

About $260 million principal amount of the notes was outstanding as of March 7.

The offer is set to expire at midnight ET on April 8. The consent deadline is 5 p.m. ET on March 24.

For each $1,000 principal amount of notes, the tender payment will be the present value on the settlement date of $1,051.25 plus the present value of all scheduled interest payments to the earliest redemption date - based on the yield to maturity of the 3 3/8% Treasury due Oct. 15, 2009 plus 50 basis points, calculated at 2 p.m. ET two business days before the expiration date - minus accrued interest to the settlement date.

Notes tendered before the consent deadline will also receive an early consent payment of $20.00 per $1,000 principal amount.

Holders will also receive accrued interest to the settlement date.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default. The amendments require consents from holders of a majority of the notes, not including notes owned by the company and its affiliates.

Tendered notes may be withdrawn and consents revoked until the consent deadline, but not after.

Holders who tender must consent to the amendments, and vice versa.

ABN Amro Bank NV (212 409-7530) is the dealer manager. D.F. King & Co., Inc. (800 829-6551 and 212 269-5550) is the information agent.

Electricidad de Caracas is a Venezuelan utility company.

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