Cap Cana Announces Settlement of Exchange Offer and Consent Solicitation

By Prne, Gaea News Network
Thursday, May 7, 2009

SANTO DOMINGO, Dominican Republic - Cap Cana, S.A. (”Cap Cana”) announced today the settlement and consummation of its exchange offer and consent solicitation (the “Exchange Offer and Consent Solicitation”), originally announced on March 31, 2009, as subsequently amended. Cap Cana issued US$129,990,800 aggregate principal amount of its 10% Senior Secured Notes due 2016 and US$126,567,000 aggregate principal amount of its 10% Senior Secured Recovery Notes due 2016 in exchange for US$236,565,000 (or approximately 95.99%) of Cap Cana’s outstanding 9.625% Senior Secured Notes due 2013 (the “Existing Notes”) that were validly tendered (plus accrued and unpaid interest on the Existing Notes through May 8, 2009). In addition, Cap Cana paid to each holder of Existing Notes who validly tendered and did not validly withdraw their Existing Notes prior to 11:59 p.m. on April 30, 2009 a fee of US$5.00 per US$1,000 principal amount of Existing Notes tendered.

The Exchange Offer and Consent Solicitation were made on the terms and conditions set forth in the Offering Circular dated March 31, 2009, as subsequently amended, and the related Consent and Letter of Transmittal.

Weston International Capital Markets LLC acted as the Dealer Manager for the Exchange Offer and Consent Solicitation.

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Existing Notes or any other securities. The Exchange Offer and Consent Solicitation were only made pursuant to the terms and conditions set forth in the Offering Circular, as amended, and the Consent and Letter of Transmittal referenced above. The Exchange Offer and Consent Solicitation were not made to holders of Existing Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

About Cap Cana

Located on the easternmost tip of the Dominican Republic, Cap Cana is being developed as a multiuse luxury resort in the Caribbean with world-class beaches, championship golf courses, yachting facilities and other leisure amenities. The property consists of over 46 square miles (119.9 square kilometers) of land, including a five-mile (eight kilometer) coastline and 2.2 miles (3.5 kilometers) of one of the most pristine beaches in the region. Cap Cana broke ground on the project in mid-2002 and, as of September 30, 2008, it has entered into contracts with aggregate value of approximately US$1.4 billion for the sale of approximately 1,500 units of real estate properties. Throughout this period, Cap Cana has delivered approximately 650 real estate properties to buyers, including retail and developer hotel lots, condominiums and villas. As of September 30, 2008, Cap Cana had invested approximately US$485 million in infrastructure and other improvements. These included construction of approximately 25 miles (40 kilometers) of paved roads, water reservoirs and associated distribution and sewage treatment systems, and power generation and distribution for the project’s increasing energy needs. Currently completed and operational are (i) a world-class private beach club, (ii) a Nicklaus Signature golf course and clubhouse, (iii) 87 slips in our inland Marina that can accommodate yachts of up to 250 feet, (iv) 14 deluxe restaurants and several upscale retail shops in the Marina area, (v) the “Cap Cana Sanctuary Golf & Spa”, a 176 suite five-star luxury hotel, (vi) the Heritage School, with approximately 300 local and international students in attendance, (vii) more than 13,000 square meters of administrative offices and (viii) a 288-room residence for its employees, and hundreds of apartments, villas, and lots.

Source: Cap Cana S.A.

Miguel Guerrero, Cap Cana, +1-809-695-5501, ext. 3999, investor.relations at

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