Net Servicos de Comunicacao S.A. Announces Extension of Consent Solicitation in Respect of Net Sul Comunicacoes Ltda.'s Senior S
26 September 2005 - 2:30PM
PR Newswire (US)
SAO PAULO, Brazil, Sept. 26 /PRNewswire-FirstCall/ -- Net Servicos
de Comunicacao S.A. ("Net") (Nasdaq: NETC; Bovespa: NETC4 and
NETC3; and Latibex: XNET) announced today that its wholly-owned
subsidiary Net Sul Comunicacoes Ltda. ("Net Sul") has extended to
12:00 p.m., New York City time, on September 26, 2005 (as extended,
the "Consent Date"), the period for the solicitation of consents
(the "Consent Solicitation") required to (i) effect certain
amendments (the "Proposed Amendments") to the indenture (the
"Indenture") under which Net Sul's 7.0% Senior Secured Notes due
2009 (the "Fixed Rate Notes") and Senior Secured Floating Rate
Notes due 2009 (the "Floating Rate Notes" and, together with the
Fixed Rate Notes, the "Notes") were issued and (ii) release all of
the collateral securing the obligations of Net Sul, Net and the
other guarantors under the Notes and the Indenture (the "Collateral
Release"), as described in the consent solicitation statement dated
September 12, 2005 (the "Consent Solicitation Statement").
Consummation of the Consent Solicitation is subject to, among other
things, Net Sul receiving valid and unrevoked consents representing
at least two-thirds in aggregate principal amount of the Notes
outstanding (the "Proposed Amendments Requisite Consent") and to
the satisfaction of certain other conditions described in the
Consent Solicitation Statement. Adoption of the Collateral Release
requires the consent of holders of at least 85% in aggregate
principal amount of Net's outstanding senior secured indebtedness
(the "Collateral Release Requisite Consent"). The receipt of the
Collateral Release Requisite Consent is not a condition to the
consummation of the Consent Solicitation. The Consent Solicitation
was originally scheduled to expire at 5:00 p.m., New York City
time, on September 23, 2005. As of 5:00 p.m., New York City time,
on September 23, 2005, the Proposed Amendments Requisite Consent
had been received. Accordingly, as set out in the Consent
Solicitation Statement, consents validly submitted can no longer be
revoked. All other terms and conditions of the Consent Solicitation
remain unchanged. These terms and conditions are set out in the
Consent Solicitation Statement. The record date for the Consent
Solicitation continues to be September 9, 2005. The Consent Date
may be further extended at the discretion of Net Sul, as set out in
the Consent Solicitation Statement. Deutsche Bank Securities Inc.
is acting as solicitation agent in connection with the Consent
Solicitation. Questions regarding the Consent Solicitation should
be directed to Deutsche Bank Securities Inc., attention: Liability
Management Group at +1 212 250-2955 (collect) or +1 866 627-0391
(US toll-free). Global Bondholder Services Corporation is acting as
the tabulation agent and information agent in connection with the
Consent Solicitation. Requests for documentation should be directed
to Global Bondholder Services Corporation at + 1 866 294-2200 (toll
free) or + 1 212 430-3774 (banks and brokers). This announcement is
not an offer to purchase, a solicitation of an offer to purchase or
a solicitation of consent with respect to any Notes. The Consent
Solicitation is being made by the Consent Solicitation Statement,
copies of which are available from the information agent. This
press release may contain forward-looking statements. These
statements are statements that are not historical facts, and are
based on management's current view and estimates of future economic
circumstances, industry conditions, company performance and
financial results. The words "anticipates", "believes",
"estimates", "expects", "plans" and similar expressions, as they
relate to Net and Net Sul, are intended to identify forward-looking
statements. Statements regarding the declaration or payment of
dividends, the implementation of principal operating and financing
strategies and capital expenditure plans, the direction of future
operations and the factors or trends affecting financial condition,
liquidity or results of operations are examples of forward-looking
statements. Such statements reflect the current views of management
and are subject to a number of risks and uncertainties. There is no
guarantee that the expected events, trends or results will actually
occur. The statements are based on many assumptions and factors,
including general economic and market conditions, industry
conditions, and operating factors. Any changes in such assumptions
or factors could cause actual results to differ materially from
current expectations. DATASOURCE: Net Servicos de Comunicacao S.A
CONTACT: Marcio Minoru, +5511-2111-2811, ; or Sandro Pina,
+5511-2111-2721, , both for Net Servicos Investor Relations
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