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Hong Kong's City Telecom launches tender, solicitation for 8¾% notes
By Jennifer Chiou
New York, June 17 - City Telecom (H.K.) Ltd. announced the start of a cash tender offer for its $72,425,000 of 8¾% senior notes due Feb. 1, 2015.
The company is also seeking consents from holders of a majority of the notes to eliminate substantially all of the restrictive covenants, reduce the scope of the company's reporting obligations and amend the circumstances under which holders may put back the securities.
The tender offer is set to end at 11:59 p.m. ET on July 15.
The consent solicitation expires at 5 p.m. ET on June 30.
For each $1,000 principal amount, the company said it will pay $950, including a $20 consent payment for those who tender by the early deadline.
City Telecom also said it will pay accrued interest to the payment date, expected for July 20.
The company previously said that holders of $16.93 million, or about 18.9%, of its 8¾% notes tendered their securities in an offer that ended at 11:59 p.m. ET on April 23.
Another previous tender for the notes was terminated on Sept. 12, 2008 because the financing condition could not be satisfied due to adverse market conditions. The company added that it had intended to fund the offer using a portion of the proceeds from a new debt financing.
As previously reported, the company bought back $10.85 million of the notes on Dec. 6, 2007, $3 million on Dec. 7, 2007, $13.85 million on Dec. 10, 2007, $3 million on Dec. 19, 2007, $5 million on Jan. 22, 2008, $3.55 million on Feb. 22 and $10.25 million on Feb. 29.
The company said it intends to fund the offer with available cash resources.
D.F. King & Co. is the information agent (888 887 0082). Citigroup Global Markets Inc. is the dealer manager and solicitation agent (800 558-3745 or call collect 212 723-6108).
City Telecom is Hong Kong's second-largest international direct-dialing operator.
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