SC 14D9/A 1 g26146a1sc14d9za.htm SC 14D9/A sc14d9za
 
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________
SCHEDULE 14D-9
(Rule 14d-101)
SOLICITATION/RECOMMENDATION STATEMENT
UNDER SECTION 14(d)(4)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 1)
TERREMARK WORLDWIDE, INC.
 
(Name of Subject Company)
TERREMARK WORLDWIDE, INC.
 
(Name of Persons Filing Statement)
Common Stock, par value $0.001 per share
 
(Title of Class of Securities)
881448203
 
(CUSIP Number of Class of Securities)
Adam T. Smith
Chief Legal Officer
Terremark Worldwide, Inc.
One Biscayne Tower
2 South Biscayne Boulevard, Suite 2800
Miami, Florida 33131
(305) 961-3200
 
(Name, address and telephone numbers of person authorized to receive notices and communications on behalf of the person(s) filing statement)
Copies of communications to:
         
Jaret L. Davis, Esq.
Greenberg Traurig, P.A.
333 Avenue of the Americas
Miami, Florida 33131
(305) 579-0500 		  Clifford E. Neimeth, Esq.
Greenberg Traurig, LLP
MetLife Building
200 Park Avenue
New York, NY 10166
(212) 801-9200 		  Clifford E. Neimeth, Esq.
Greenberg Traurig, LLP
2375 East Camelback Road
Suite 700
Phoenix, AZ 85016
(602) 445-8000
o   Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
 
 

 

 

     This Amendment No. 1 (this “Amendment”) amends and supplements the Solicitation/Recommendation Statement on Schedule 14D-9 (as amended or supplemented from time to time, the “Recommendation Statement”) originally filed on February 11, 2011 with the Securities and Exchange Commission (the “SEC”) by Terremark Worldwide, Inc., a Delaware corporation (“Terremark”). The Recommendation Statement relates to the cash tender offer by Verizon Holdings Inc. (“Purchaser”), a Delaware corporation and a wholly-owned subsidiary of Verizon Corporation Inc., a Delaware corporation (“Parent”), described in Purchaser’s and Parent’s Tender Offer Statement on Schedule TO filed with the SEC on February 10, 2011.
     Except as set forth below, the information set forth in the Recommendation Statement remains unchanged and is incorporated herein by reference as relevant to the items in this Amendment.
Item 9. Exhibits.
     Item 9, “Exhibits” is hereby amended and supplemented by inserting the following exhibit:
     “(a)(9) Press release, dated February 14, 2011, issued by Terremark announcing its consent solicitation relating to its outstanding 6.625% senior convertible notes due 2013.”

 

 

SIGNATURE
     After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
         
Dated: February 15, 2011   TERREMARK WORLDWIDE, INC.
 		  
  By:   /s/ Adam T. Smith    
    Adam T. Smith   
    Chief Legal Officer   
 

 

 

(TERREMARK)
FOR IMMEDIATE RELEASE
Terremark Commences Consent Solicitation
Relating to its Outstanding 6.625% Senior Convertible Notes due 2013
MIAMI — February 14, 2011 — Terremark Worldwide, Inc. announced today that it is soliciting consents from holders of its outstanding 6.625% Senior Convertible Notes due 2013 to approve an amendment to the indenture relating to the Notes that would remove the Company’s obligation to provide the trustee under the Indenture with copies of certain reports it files with the Securities and Exchange Commission and in the event that Terremark is no longer required to file reports with the SEC, to provide the Trustee and each holder of Notes with financial statements and other information relating to Terremark and, upon request, to provide the information required under Rule 144A(d)(4) of the Securities Act of 1933, as amended. The proposed amendment would become operative only following the direct or indirect acquisition by Verizon Communications Inc. of a majority of the shares of common stock of Terremark then outstanding determined on a fully-diluted basis.
Verizon previously announced on February 10, 2011 that, pursuant to an Agreement and Plan of Merger dated January 27, 2011, by and among Terremark, Verizon and Verizon Holdings Inc., a wholly owned subsidiary of Verizon, Verizon Holdings Inc. had commenced a tender offer for all outstanding shares of common stock of Terremark.
Consenting holders are being offered a fee of $5.00 per $1,000 principal amount of Notes for consenting to the proposed amendment. Adoption of the proposed amendment requires the consent of holders of at least a majority of the outstanding aggregate principal amount of the Notes. The aggregate outstanding principal amount of the Notes as of February 9, 2011 was $57,192,000. Goldman, Sachs & Co. is acting as Solicitation Agent for the Consent Solicitation.
The Consent Solicitation will expire at 5:00 p.m., New York City time, on February 28, 2011, unless extended by the Company. Only holders of record of the Notes as of 5:00 p.m., New York City time, on February 9, 2011, are eligible to deliver consents to the proposed amendment in the Consent Solicitation.

 

 

(TERREMARK)
Payment of the consent fee is conditioned upon, among other things, the receipt of the requisite consents at or prior to the Expiration Date, the entering into of a supplemental indenture in order to document the amendment to the Indenture, the consummation of the Verizon Acquisition, and certain other conditions set forth in the Consent Solicitation Statement, dated February 14, 2011, and the related Consent Form. The consent fee will be paid promptly following the Verizon Acquisition and satisfaction of the other conditions described above.
Consents with respect to the Notes may not be revoked after the time and date on which the requisite consents are received by the Company and the Company enters into a supplemental indenture. The Consent Solicitation does not affect the ability of a holder to convert its Notes pursuant to the terms of the Indenture or any other rights of the holder under the Indenture following a Change of Control (as defined in the Indenture).
The Consent Solicitation is being made solely on the terms and subject to the conditions set forth in the Consent Documents. The Consent Solicitation is conditioned upon the receipt of the requisite consents on or prior to the Expiration Date and certain other conditions set forth in the Consent Solicitation Statement. However, in no event will the proposed amendment become operative until the consummation of the Verizon Acquisition as described above.
The Consent Solicitation presents risk for holders who consent, as set forth more fully in the Consent Solicitation Statement. That document contains important information, and holders should read it carefully before making any decision.
Copies of the Consent Documents and other related documents may be obtained from Georgeson Inc., the Information Agent, at (877) 278-4751 (toll free). Holders of the Notes are urged to review the Consent Documents for the detailed terms of the Consent Solicitation and the procedures for consenting to the proposed amendment. Any persons with questions regarding the Consent Solicitation should contact the Solicitation Agent, Goldman, Sachs & Co., at (212) 902-5183 (collect) or (800) 828-3182 (toll free).

 

 

(TERREMARK)
This announcement is for information purposes only and is neither an offer to sell nor a solicitation of an offer to buy any security. This announcement is also not a solicitation of consents with respect to the proposed amendment or any securities. No recommendation is being made as to whether holders of Notes should consent to the proposed amendments. The solicitation of consents is not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable state or foreign securities or “blue sky” laws.
Additional Information and Where to Find It
This press release is not an offer to purchase nor a solicitation of an offer to sell securities. Verizon’s tender offer for shares of Terremark’s common stock commenced on February 10, 2011, and, in connection with the offer, Verizon caused a new subsidiary, Verizon Holdings Inc., to file a tender offer statement on Schedule TO with the Securities and Exchange Commission (the “SEC”). Terremark stockholders are strongly advised to read the tender offer statement (including the offer to purchase, letter of transmittal and related tender offer documents) and the related solicitation/recommendation statement on Schedule 14D-9 filed by Terremark with the SEC because they contain important information about the proposed transaction. These documents are available at no charge on the SEC’s website at www.sec.gov. In addition, a copy of the offer to purchase, letter of transmittal and certain other related tender offer documents may be obtained free of charge by directing a request to Verizon at 212-395-1525. A copy of the tender offer statement and the solicitation/recommendation statement are also available to all stockholders of Terremark by contacting Terremark’s Investor Relations at 305-961-3109 or hblankenbaker@terremark.com.
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Terremark by Verizon. In connection with the proposed acquisition, Terremark intends to file relevant materials with the SEC, including Terremark’s proxy statement in preliminary and definitive form. Terremark stockholders are strongly advised to read all relevant documents filed with the SEC, including Terremark’s definitive proxy statement, because they will contain important information about the proposed transaction. These documents will be available at no charge on the SEC’s website at www.sec.gov. In addition, documents will also be available for free from Terremark by contacting Terremark’s Investor Relations at 305-860-7822 or hblankenbaker@terremark.com.

 

 

(TERREMARK)
Participants in Solicitation
Verizon and its directors and executive officers, and Terremark and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Terremark common stock in respect of the proposed transaction. Information about the directors and executive officers of Verizon is set forth in the proxy statement for Verizon’s 2010 Annual Meeting of Stockholders, which was filed with the SEC on March 22, 2010. Information about the directors and executive officers of Terremark is set forth in the proxy statement for Terremark’s 2010 Annual Meeting of Stockholders, which was filed with the SEC on June 17, 2010. Investors may obtain additional information regarding the interest of such participants by reading the definitive proxy statement regarding the acquisition when it becomes available.
Certain statements in this communication regarding the proposed transaction between Verizon and Terremark and any other statements regarding Terremark’s future expectations, beliefs, goals or prospects constitute forward-looking statements. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered forward-looking statements. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements. Terremark assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful.
# # #
CONTACT:
Media Relations
Terremark Worldwide, Inc.
Xavier Gonzalez
305-961-3134
xgonzalez@terremark.com
Investor Relations
Terremark Worldwide, Inc.
Hunter Blankenbaker
305-961-3109
hblankenbaker@terremark.com