Mexico's Axtel launches offer to swap 2017, 2019 notes for 2020 notes

By Caroline Salls

Pittsburgh, Nov. 25 - Axtel, SAB de CV launched an offer to exchange its 7 5/8% senior notes due 2017 and 9% senior notes due 2019 for $110 million of senior secured notes due 2020, according to a Grupo BMW release.

Initial interest on the bonds due 2020 will be 7%. The interest rate will increase to 8% on Jan. 31 and to 9% on Jan. 31, 2015.

The exchange offer will expire at 11:59 p.m. ET on Dec. 20.

Holders who agree to exchange their bonds after a Dec. 6 early consent deadline will receive $910 of 2020 bonds for each $1,000 of 2017 bonds held and $800 of 2020 bonds for each $1,000 of 2019 bonds held.

In addition, the company will issue an additional $36 million in new senior secured notes due 2020.

DF King & Co. is the information agent (212 269-5550 or 800 967-4612).

Axtel is a fixed-line integrated telecommunications company based in San Pedro Garza Garcia, Mexico.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.