Mexico’s Grupo KUO begins tender, consent bid for 6¼% notes due 2022

By Wendy Van Sickle

Columbus, Ohio, June 15 – Mexico’s Grupo KUO SAB de CV launched a tender offer and consent solicitation for any and all of its 6¼% notes due 2022, according to a press release.

The company is offering $1,020 per $1,000 principal amount to holders who tender their notes and deliver their consents by the early tender deadline, 5 p.m. ET on June 28.

That amount includes a $30 early tender payment. Holders who participate after the early deadline will receive $990 per $1,000 principal amount.

Holders will also receive accrued interest to the relevant settlement date.

The offer expires at 11:59 p.m. ET on July 13.

Early settlement is expect to occur on July 6.

Tenders may be withdrawn through the early deadline.

Under the consent solicitation, the company is proposing amendments to eliminate its obligation to comply with substantially all of the covenants contained in the note indenture, remove certain events of default and shorten the minimum notice period to holders required for a redemption to six business days from 30 business days prior to the redemption date, with an additional minimum notice of three business days to the trustee.

The amendments require consents from holders of at least a majority of the principal amount of notes for passage.

Holders may not tender notes without delivering consents and may not deliver consents without tendering their notes.

The tender offer is subject to a financing condition.

Merrill Lynch, Pierce, Fenner & Smith Inc. (646 855‑8988 or 888 292‑0070) is the dealer manager and solicitation agent.

D.F. King & Co., Inc. (800 713-9960 or 212 269‑5550 for banks and brokers) is the tender agent and information agent.

Grupo KUO is a Mexico City-based chemical, automotive and food conglomerate.

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