Credito Real reports early tenders for 10¼% senior notes due 2015

By Toni Weeks

San Luis Obispo, Calif., March 10 - Credito Real, SAB de CV said it took in tenders and consents for about $180.7 million, or 86.06%, of its outstanding 10¼% senior notes due 2015 by 5 p.m. ET March 10, the early tender date for the company's tender offer and consent solicitation.

The company said the amount received exceeded the amount needed to approve the proposed amendments to the note indenture. It intends to execute a supplemental indenture, which will eliminate the company's obligation to comply with substantially all of the covenants, remove certain events of default and shorten the minimum notice period to holders required for a redemption to six business days from 30 days prior to the redemption date, with an additional minimum notice of three business days to the trustee.

The supplemental indenture will become operative when the company purchases a majority in principal amount of the notes, which is expected to occur March 13.

The total purchase price will be $1,095 per $1,000 of notes tendered by the consent deadline. The total amount includes an early tender payment of $30 per $1,000 of notes.

Those who tender after the early deadline will receive the total payment less the early amount.

The tender offer will end at midnight ET on March 24.

Tendered notes may no longer be withdrawn.

The company also will pay accrued interest.

The tender offer is conditioned on the satisfaction of some conditions, including the closing on March 13 of an offering of $350 million of 7½% senior notes due 2019.

Barclays (212 528-7581 collect or 800 438-3242) and BofA Merrill Lynch (646 855-8988 collect or 888 292-0070) are the dealer managers and solicitation agents. D.F. King & Co., Inc. (800 431-9645 or banks and brokers may call collect at 212 269-5550) is the tender agent and information agent.

Credito Real is a Mexico City-based consumer financing services company.

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