Endesa Chile gets needed consents for $40.42 million 8 1/8% notes

By Susanna Moon

Chicago, July 24 - Empresa Nacional de Electricidad SA, or Endesa Chile, said it received consents from a majority of holders of five series of notes and that it will enter into a supplemental indenture for the notes.

The consent deadline was 5 p.m. ET on Friday. The record date is July 7.

On July 22 Endesa Chile restated the amount outstanding under its 8 1/8% notes due 2097 as $40,416,000 principal amount. The consent solicitation statement dated July 8 had said there were $42,416,000 principal amount of the notes outstanding.

Endesa Chile said on July 8 that it began a consent solicitation for its 8 1/8% notes, 8.35% notes due 2013, 8 5/8% notes due 2015, 7 7/8% notes due 2027 and 7 3/8% notes due 2037.

The company is a subsidiary of Enersis SA, which began a consent solicitation for its 7 3/8% notes due 2014, 7.4% notes due 2016 and 6.6% notes due 2026 on July 8. Enersis also received the consents required to amend its notes as of 5 p.m. Friday.

Each company sought to amend the cross-default clause in the indenture governing its notes so that it would apply only to that company and its subsidiaries organized under the laws of the Republic of Chile. The definition of "significant subsidiary" would be similarly amended so that it would be limited to only those significant subsidiaries organized under the laws of Chile.

The concept of significant subsidiary is used in the bankruptcy and insolvency proceedings clauses of the indentures, the release noted.

The consent solicitations required the receipt of consents from the holders of at least a majority of the outstanding notes, excluding notes owned by the companies or any affiliates.

The total outstanding principal amount of Enersis' three series of notes is $601 million, and the total outstanding principal amount of Endesa Chile's notes is $917 million.

Noteholders are being offered an undisclosed consent payment.

JPMorgan (866 846-2874 or 212 834-4374) is the solicitation agent. Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the information agent.

Enersis holds direct and indirect participation in the electric power generation, transmission and distribution businesses. It holds a 60% interest in Endesa Chile, an electricity generation company. Both are based in Santiago, Chile.

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