Rede Energia S.A. Announces the Results of its Modified Dutch Auction Tender Offer
Published June 29th, 2009
Rede Energia S.A., a Brazilian electricity holding company (“Rede”), announced today the results of its cash tender offer (the “Tender Offer”) for the maximum aggregate principal amount of its outstanding 11.125% Perpetual Notes (CUSIP No. 75734PAA7 and ISIN No. USP8001VAD84) (the “Notes”) that it can purchase for US$154,083,205. The Tender Offer was conducted in accordance with a modified “Dutch Auction” procedure, on the terms and subject to the conditions set forth in its Offer to Purchase dated June 1, 2009 (the “Offer to Purchase”) and the related Letter of Transmittal (the “Letter of Transmittal,” and together with the Offer to Purchase, the “Offer Documents”). The Tender Offer expired at 12:00 midnight, New York City time, on Friday, June 26, 2009 (such time and date, the “Expiration Date”).
Rede has been advised by the depositary that, as of 12:00 midnight, New York City time, on the Expiration Date, of the US$575.0 million in aggregate principal amount of the Notes outstanding, US$78,404,000, or approximately 13.64%, had been validly tendered and not validly withdrawn pursuant to the Tender Offer. Rede has accepted for purchase all Notes validly tendered and not validly withdrawn pursuant to the Tender Offer.
On the Settlement Date (as defined in the Offer to Purchase), which is expected to be July 1, 2009, Rede (1) will pay holders who validly tendered and did not withdraw their Notes prior to or at 5:00 p.m., New York City time, on Friday, June 12, 2009, the Total Consideration (as defined in the Offer to Purchase) of US$530 for each US$1,000 principal amount of Notes, plus accrued and unpaid interest from the last interest payment date to, but excluding, the Settlement Date (the “Accrued Interest,” which is expected to be approximately US$27.50 per US$1,000 principal amount of the Notes), and (2) will pay holders who validly tendered and did not withdraw their Notes after 5:00 p.m., New York City time, on Friday, June 12, 2009, and at or prior to the Expiration Date the Tender Offer Consideration (as defined in the Offer to Purchase) of US$480 for each US$1,000 principal amount of Notes, plus the Accrued Interest.
Rede has retained Banc of America Securities LLC and Planner Securities LLC to act as dealer managers in connection with the Tender Offer. Questions regarding the Tender Offer should be directed to Banc of America Securities LLC at (888) 292-0070 (toll free) or (646) 855-3401 (collect from outside the United States), or Planner Securities LLC at (646) 381-7001 (collect from outside the United States). Copies of the Offer to Purchase and the related Letter of Transmittal may be obtained from Global Bondholder Services Corporation, the information agent for the Tender Offer, at (866) 804-2200 (toll free).
