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The company will sell $100 million of the senior notes and grant buyers an option to purchase as much as $25 million more.
A federal appeals court ruled yesterday that the financier Carl C. Icahn's tender offer for the senior notes of Reliance Group Holdings could go forward.
The company said the extraordinary gain, which it will record in its third quarter, was due to the substantial discount of the exchange relative to the book value of the senior notes.
This is the "equity investor," who takes whatever income the fund has after paying off the senior notes.
Berkshire was to pay 70 cents on the dollar for the senior notes, which would have matured in 2009 with contingent interest due in 2016.
The senior notes for Globalstar, whose biggest backer is Loral, are at the top of the creditor food chain and are well traded.
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The Singapore-based company, formerly known as Garena, said that the senior note offering will put toward general costs and business expansion.
The terms of the new senior notes will depend on market conditions, EMI said.
It offered to buy one of those bond issues, the 5.7 percent senior notes maturing in 2034, for 100 cents on the dollar, to block the move.
Upon completion of the IPO, the company plans a $500 million debt offering and will use money raised from the sale of senior notes to repay the balance of the bank loan.
Under the tender offer, Mr. Icahn sought to buy $40 million worth of the company's senior notes at 17 cents on the dollar.
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