Mexico’s Credito Real holders tender 68.27% of 7½% notes due 2019

By Susanna Moon

Chicago, Aug. 3 – Mexico’s Credito Real SA de CV said investors had tendered $290.1 million, or 68.27%, of its 7½% senior notes due 2019 in the offer that ran until midnight ET on Aug. 2.

The final tally includes $288.3 million, or 67.85%, of the notes tendered as of 5 p.m. ET on July 19, the early tender date.

Credito Real plans to accept for purchase all of the notes tendered since the early deadline, with settlement set for Wednesday, according to a company update.

As announced July 6, holders who tendered after the early deadline will receive the tender price of $1,027.50 per $1,000 principal of notes.

The total purchase price was $1,057.50, consisting of a tender amount of $1,027.50 plus an early premium of $30.00, for each $1,000 principal amount of notes tendered by the early tender deadline.

The issuer also will pay accrued interest.

The company said on July 20 that it had secured the needed consents to amend the notes with the supplemental indenture operative on the early settlement date of July 20.

The company was soliciting consents to eliminate the company’s obligation to comply with substantially all of the covenants, to remove events of default and to shorten the minimum notice period to holders required for a redemption to six business days from 30 days, with an additional minimum notice of three business days to the trustee.

The offer was contingent on the company obtaining enough proceeds to fund the purchase.

As reported July 14, Credito Real SAB de CV, Sofom, ENR priced $625 million of 7¼% notes due July 20, 2023 at 99.326.

To amend the notes, the company needed consents from holders representing at least a majority of the outstanding notes.

Barclays (212 528-7581 or 800 438-3242), Deutsche Bank Securities Inc. (212 528-7581 or 855 287-1922) and Morgan Stanley & Co. LLC (212 250-7527 or 800 624-1808) are the dealer managers and solicitation agents. D.F. King & Co., Inc. (212 269-5550 or creal@dfking.com) is the tender agent and information agent.

Credito Real is a Mexico City-based consumer financing services company.

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