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Published on 9/14/2012 in the Prospect News Emerging Markets Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

Mexico's Mexichem gets tenders and consents for 76.32% of 8¾% notes

By Susanna Moon

Chicago, Sept. 14 - Mexichem SAB de CV said holders tendered $267,118,000 principal amount, or 76.32%, of its outstanding 8¾% senior notes due 2019 by the end of the offer at 5 p.m. ET on Sept. 13.

As a result, the company received more than enough consents to amend the notes, according to a press release.

The company said it accepted all of the tendered notes and expects to enter into a supplemental indenture on the settlement date of Sept. 19.

As previously noted, the company solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default.

Holders who tendered their notes in the offer needed to provide their consents to the proposed amendments.

The total purchase price includes a consent fee and will be $1,245 per $1,000 principal amount of notes tendered by the offer expiration. The consent payment is $30.00 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

Tendered notes may not be withdrawn, and the related consents may not be revoked.

If the needed consents had not been obtained, the consent solicitation could have been terminated and the company could have decided to accept and purchase notes tendered in the concurrent tender offer for the total price, according to a previous release.

The tender offer was conditioned on a financing condition. Mexichem priced a $1.15 billion offering of bonds on Sept. 13.

D.F. King & Co., Inc. (800 769-4414 or 212 269-5550) is the tender and information agent.

Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106), HSBC Securities (USA) Inc. (888 HSBC-4LM or collect 212 525-5552), J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-2452) and Morgan Stanley & Co. LLC (800 624-1808 or collect 212 761-1057) are the dealer managers and solicitation agents.

Mexichem is a Tlalnepantla, Mexico-based producer of PVC resins, pipes and related products.


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