Maxcom starts exchange for senior notes

New York, Sept. 8 - Maxcom Telecomunicaciones SA de CV said it has begun an exchange offer for up to all $167.62 million principal amount of its 0%/10% senior notes due 2007.

The Mexico City-based telecommunications company is offering to issue $167.62 million principal amount of senior step-up notes due 2009 or 134.10 million series N-1 shares with limited voting rights.

The exchange is intended to improve the company's leverage and capital structure.

Maxcom said after completing the exchange and modifying the note covenants it should be "favorably" positioned to attract additional investments and access future growth opportunities.

The new step-up notes will mature on Oct. 15, 2009. Interest will be paid semi-annually in cash at 4% through April 14, 2005, step up to 5¾% through Oct. 14, 2005, 7¾% through April 14, 2006, 8¼% through Oct. 14, 2006, 9¼% through Oct. 14, 2007, 10¼% through Oct. 14, 2008 and 11¼% through the maturity date.

Maxcom is also soliciting consents from noteholders to amend certain restrictive covenants contained in the note indenture. Consents are needed from holders of at least a majority of the principal amount of notes not held by the company or an affiliate.

Maxcom said it has entered into an agreement with Nexus-Maxcom Holdings I LLC, an affiliate of Banc of America Equity Partners, under which Nexus-Maxcom will tender all $126.4 million principal amount of the notes it owns in exchange for series N-1 shares.

The exchange runs through 5 p.m. ET on Oct. 6.

Bank of New York is the exchange offer agent. For information, contact Maxcom chief financial officer Jose-Antonio Solbes (+5255 5147-1125) or Lucia Domville at information agent Citigate Financial Intelligence (201 499-3548).

© 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.