RIO DE JANEIRO, Brazil, Nov. 25, 2005 (PRIMEZONE) -- Tele Norte Leste Participacoes S.A. ("TNL") announced today the results of its cash tender offer for up to US$150,000,000 of its US$300,000,000 8.00% notes due December 18, 2013 (the "Notes") (CUSIP Nos.: 879246AB2, 879246AA4 and P90369AA0; ISIN Nos. US879246AB24, US879246AA41 and USP90369AA07; Common Code Nos. 020292709 and 018258609). The offer expired at 5:00 p.m., New York City time, on November 23, 2005.
TNL has been advised by the depositary that, as of the expiration date of the offer, of the US$ 300,000,000 in aggregate principal amount of Notes outstanding, US$208,229,000 had been validly tendered and not validly withdrawn pursuant to the offer. Of the Notes tendered and not validly withdrawn, TNL has accepted for purchase an amount equal to US$150,000,000. As a result, the proration factor for Notes validly tendered will be approximately 72%.
TNL will pay a total consideration of US$1,080,87 per US$1,000 principal amount of the Notes plus accrued and unpaid interest from the last interest payment date to, but excluding, the settlement date, for the Notes accepted pursuant to the offer on the settlement date, which is expected to be December 1, 2005. Noteholders who did not validly tender their Notes prior to 5:00 p.m., New York City time, on Wednesday, October 26, 2005, will not receive the early tender premium, equal to US$20 per US$1,000 principal amount of Notes, which is included in the total consideration.
By taking advantage of the favorable moment to decrease its average cost of funding, TNL reinforces its commitment to maintain a sound balance sheet. The repurchase of the Notes is in line with the Company's strategy of conducting the most efficient management of its assets and liabilities.
TNL has retained Citigroup Corporate and Investment Banking to act as Dealer Manager for the Offer and Global Bondholder Services Corporation to act as the depositary and information agent for the Offer.
Requests for documents may be directed to Global Bondholder Services Corporation by telephone at +1 (866) 470-4200 (in the United States) or +1 (212) 430-3774 or in writing at Global Bondholder Services Corporation 65 Broadway - Suite 704, New York, New York 10006, Attn. Corporate Actions. These documents contain important information, and holders should read them carefully before making any investment decision. Questions regarding the Offer may be directed to Citigroup Corporate and Investment Banking at +1 (800) 558-3745 (in the United States) or +1 (212) 723-6108 (outside the United States, call collect) or in writing at Citigroup Corporate and Investment Banking, Liability Management Group, 390 Greenwich Street, 4th Floor, New York, New York 10013.
This announcement is not an offer to purchase, nor a solicitation of an offer to purchase, nor a solicitation of tender with respect to, any Notes. The Offer is being made solely upon the terms, and subject to the conditions, set forth in the Offer to Purchase, dated October 11, 2005, and the related Letter of Transmittal.