Barbados' Columbus solicits consents, default waiver for 11½% notes

By Angela McDaniels

Tacoma, Wash., April 5 - Columbus International Inc. began a consent solicitation for its $640 million of outstanding 11½% senior secured notes due 2014, according to a company news release.

The company is seeking to amend some covenants in the indenture governing the notes and a waiver of some non-financial technical defaults.

The purpose of the consent solicitation and the amendments is (i) to give the company the flexibility to incur additional debt to enable it to pursue business opportunities and (ii) to extend the grace period for some of its subsidiaries to create and perfect security interests in certain additional collateral in favor of the noteholders, according to the release.

The consent solicitation will expire at 5 p.m. ET on April 16. The record date is 5 p.m. ET on April 4.

The company is offering a consent fee of $2.50 for each $1,000 principal amount of notes.

The company's obligation to accept consents and pay the consent fee is conditioned on, among other things, the receipt of consents from the holders of at least a majority of the outstanding notes.

Citigroup (212 723-6106 or 800 558-3745) is the solicitation agent. Global Bondholder Services Corp. (212 430-3774 or 866 794-2200) is the information and tabulation agent.

Columbus International is a telecommunications company based in Bridgetown, Barbados.

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