Telemar Norte Leste swaps $607.94 million of 9½% notes for 5½% notes

By Devika Patel

Knoxville, Tenn., Oct. 8 - Telemar Norte Leste SA said it completed its private offer to exchange new 5½% senior notes due 2020 for its outstanding 9½% senior notes due 2019.

By 11:59 p.m. ET on Oct. 6, the expiration date, holders had tendered $607,942,000 of the 9½% notes. The company accepted all notes that were tendered by the expiration date.

Telemar was also soliciting consents to amend provisions of the old notes to conform them to the corresponding provisions in the indenture of the new notes. It has received the needed consents, and the changes have taken effect.

The total exchange price is $1,295.12 for each $1,000 in notes, including an early exchange premium of $30.00 for notes tendered by 5 p.m. ET on Sept. 22, the early exchange date.

Holders who tendered their old notes and delivered their consents after the early exchange date but by the expiration date will not receive the early exchange premium.

The company priced $1 billion principal amount of 5½% senior notes due 2020 on Sept. 8. The new notes issued in the exchange offer will constitute an additional issuance of notes sold under the offering.

Global Bondholder Services Corp. was the information agent and the exchange agent for the offer.

Telemar Norte Leste is a telecommunications company based in Rio de Janeiro.

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