Financiera Independencia accepts $104.15 million notes for exchange

By Mary-Katherine Stinson

Lexington, Ky., Feb. 21 – Mexico’s Financiera Independencia, SAB de CV (Findep) announced the final results of its Jan. 24 offer to exchange any and all of its $161.637 million outstanding 8% senior notes due 2024 (ISIN: USP4173SAF13, US31770BAC28) for newly issued 10% step-up senior notes due 2028 and the related consent solicitation.

As of 5 p.m. ET on Feb. 17, the expiration date, holders had tendered $104.15 million of the existing notes.

This includes the $92,545,000 of existing notes tendered before the early expiration date.

Previously, the company had agreed to extend the payment of the cash exchange premium of $10 per $1,000 principal amount of existing notes to notes tendered through the expiration of the offer.

All holders who tendered their existing notes before the expiration are eligible to receive the total exchange consideration, which is $800 principal amount of new notes and a cash payment of $210 for each $1,000 principal amount of existing notes. The company will also pay accrued interest.

Simultaneously, the company was soliciting consents to proposed amendments to the indenture governing the existing notes to eliminate substantially all the restrictive covenants and some events of default and related provisions.

The necessary consents were received as of the early expiration date, according to a Feb. 17 press release. The proposed amendments required the consents of holders of a majority in aggregate principal amount of the outstanding existing notes, excluding any existing notes held by the company or its affiliates.

Noteholders could not tender their notes without consenting to the proposed amendments. Tendering noteholders were deemed to have given consent.

Settlement is expected for March 1, which will correspond to the issuance date of the step-up notes. The issuance of the step-up notes was approved by the shareholders of the company on Feb. 13.

As previously reported, the newly issued step-up notes will mature on March 1, 2028. The interest rate will step up to 12% from the initial 10% on March 1, 2026 and remain at that rate to maturity. The new notes will be guaranteed jointly and severally by Apoyo Economico Familiar, SA de CV, Sofom, ENR and Apoyo Financiero, Inc.

The exchange offer was only open to Regulation S noteholders.

The offer was conditioned on the satisfaction or waiver of several conditions, including board and shareholder approval of the new issue of step-up notes.

BCP Securities, Inc. is dealer manager for the exchange offer and solicitation agent for the consent solicitation.

D.F. King & Co., Inc. (888 478-5040, 212 269-5550; findep@dfking.com; www.dfking.com/findep) is the information and exchange agent.

Financiera Independencia is a microfinance lender based in Mexico City.

© 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.