City Telecom Announces It Has Received Requisite Consents With Respect to Its Tender Offer and Consent Solicitation for Its 8.75
July 25 2008 - 8:11AM
PR Newswire (US)
HONG KONG, July 25 /PRNewswire-FirstCall/ -- City Telecom (H.K.)
Limited (the "Company", SEHK: 1137, Nasdaq: CTEL), a corporation
incorporated under the laws of Hong Kong, today announced it had
received, as of 5:00 p.m., New York City time, on July 24, 2008,
tenders and consents from holders of a majority in aggregate
principal amount of the Company's outstanding 8.75% Senior Notes
due 2015 (the "Notes") in connection with its cash tender offer and
consent solicitation for the Notes, which commenced on July 9,
2008. It is expected that the Company will execute a supplemental
indenture (the "Supplemental Indenture") to the indenture governing
the Notes (the "Indenture") to, among other things, eliminate
substantially all of the restrictive covenants and certain events
of default provisions in the Indenture. The Supplemental Indenture
will be immediately effective but will not become operative until a
majority in aggregate principal amount of the outstanding Notes
have been accepted for purchase pursuant to the terms of the tender
offer and the consent solicitation. The consent solicitation
expired at 5:00 p.m. New York City time, on July 24, 2008 (the
"Consent Date"). Holders who validly tendered Notes on or prior to
the Consent Date will receive a consent payment of US$20 per
US$1,000 principal amount of the Notes accepted for purchase (the
"Consent Payment"), in addition to the tender offer consideration.
Holders who validly tender their Notes after the Consent Date but
before the expiration of the tender offer will not receive the
Consent Payment, but will receive payment of the tender offer
consideration of US$960 per US$1,000 principal amount of the Notes
validly tendered and accepted for purchase on the payment date in
accordance with the terms set forth in the Offer to Purchase and
Consent Solicitation Statement. The tender offer will expire at
8:00 a.m. New York City time, on August 21, 2008 unless extended or
earlier terminated (such date and time, as the same may be
modified, the "Expiration Date"). HSBC Securities (USA) Inc. is
acting as Dealer Manager for the tender offer and as the
Solicitation Agent for the consent solicitation and can be
contacted in New York at (888) HSBC-4LM (toll-free) or +1 (212)
525-5552 (collect), in Hong Kong at +852 2822-3071, in London at
+44 (20) 7991-5874 or via e-mail at . D.F. King & Co., Inc. is
the Information Agent and can be contacted at (212) 269-5550 (for
banks and brokers only) or (800) 628-8532 (toll free). Copies of
the Offer to Purchase and Consent Solicitation Statement and other
related documents may be obtained from the Information Agent. The
Offer to Purchase and Consent Solicitation are being made solely on
the terms and conditions set forth in the Offer to Purchase and
Consent Solicitation Statement. This communication is for
informational purposes only and is qualified by reference to the
Offer to Purchase and Consent Solicitation Statement. Under no
circumstances shall this press release constitute an offer to buy
or the solicitation of an offer to sell any securities of the
Company. This press release also is not a solicitation of consents
to the proposed amendments to the Indenture. About City Telecom
(H.K.) Limited Established in 1992, City Telecom (H.K.) Limited
(SEHK:1137SEHK: Nasdaq:SEHK:CTEL) provides integrated
telecommunications services in Hong Kong. City Telecom's
wholly-owned subsidiary, Hong Kong Broadband Network Limited
(HKBN), is in the process of expanding its Next Generation Network
from approximately 1.4mn to 2.0mn homes pass. HKBN has achieved an
aggregate Voice, Broadband (symmetric 25Mbps up to 1Gbps), IP-TV
and Corporate data services base in excess of 726,000
subscriptions. Additional information on City Telecom can be found
at http://www.ctigroup.com.hk/. DATASOURCE: City Telecom (H.K.)
Limited CONTACT: Corporate Communications, Jessie CHENG,
+852-3145-4118, Fax, +852-2199-8372, , or Investors Relations,
Peggy CHAN, +852-3145-6068, Fax, +852-2199-8655, Web site:
http://www.ctigroup.com.hk/
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