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Grupo Kaltex terminates tender offer for 8 7/8% notes
By Wendy Van Sickle
Columbus, Ohio, Feb. 11 – Mexico’s Grupo Kaltex SA de CV said it terminated its cash tender offer for its $218 million outstanding 8 7/8% notes due 2022 after the financing condition was not satisfied, according to a press release Friday.
The offer was announced on Jan. 26 along with a related consent solicitation, which was also canceled.
As of the early tender payment deadline at 5 p.m. ET on Feb. 8, $187,738,000 aggregate principal amount of the notes, representing 86.1% of the outstanding notes, had been validly tendered and not withdrawn under the tender offer, as previously reported. Tendered notes will be promptly returned.
The proposed amendments under the consent solicitation, among other things, would have eliminated substantially all of the restrictive covenants, as well as various events of default and related provisions contained in the indenture and release collateral securing the notes.
The company previously decided to extend the early tender payment deadline to 5 p.m. ET on Feb. 11, and the tender offer was set to expire at 11:59 p.m. ET on Feb. 23.
The total consideration payable to holders for each $1,000 principal amount of notes was to be $1,000, which includes an early tender payment of $30 per $1,000 of notes.
Proceeds from a planned concurrent financing transaction were to be used to fund the tender offer and consent solicitation.
The company said it has decided to postpone the transaction and that it will explore alternatives to access the market in the short term.
D.F. King & Co Inc. (212 269-5550; 800 848-3405; kaltex@dfking.com) is the information agent and tender agent of the offer and consent solicitation, and Morgan Stanley & Co. LLC is acting as dealer manager.
Grupo Kaltex is a textile company based in Mexico.
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