Navios South American launches cash tender offer for 9¼% senior notes

By Marisa Wong

Madison, Wis., April 8 - Navios South American Logistics Inc. and wholly owned finance subsidiary Navios Logistics Finance (US) Inc. have begun a cash tender offer for any and all of their outstanding 9¼% senior notes due 2019, according to a press release.

The companies are also soliciting consents to eliminate or modify most of the restrictive covenants and some events of default and make other changes to provisions contained in the indenture governing the 9¼% notes.

The offer is scheduled to expire at midnight ET on May 5.

Holders tendering their notes at or prior to midnight ET on April 21, the consent payment deadline, will be required to consent to the proposed amendments to the indenture.

Holders who tender their notes at or prior to the consent payment deadline will be eligible to receive total consideration of $1,076.37 per $1,000 principal amount of notes. The total consideration includes a cash consent payment of $30.00 per $1,000 principal amount.

Holders who tender their notes after the consent payment deadline but at or prior to the expiration time will not be eligible to receive the consent payment but will receive the tender offer consideration of $1,046.37 per $1,000 of notes.

Holders will also be paid accrued interest up to, but not including, the applicable payment date.

The offer is expected to have an initial payment date. Holders whose notes are by the consent payment deadline and accepted for purchase should expect to receive payment as early as April 22.

Tendered notes may be withdrawn at any time at or prior to the consent payment deadline.

The tender offer and consent solicitation are conditioned on a majority in outstanding principal amount of the notes having been tendered and consents for those notes having been delivered. In addition, the offer is subject to a financing condition.

Navios announced separately on Tuesday that it plans to price $350 million of eight-year senior notes.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager and solicitation agent. D. F. King & Co., Inc. (800 769-4414 or 212 269-5550) is the information agent and tender agent.

Navios South American Logistics is a Montevideo, Uruguay, logistics company and a subsidiary of Piraeus, Greece-based Navios Maritime Holdings Inc. The subsidiary provides storage and marine transportation needs for petroleum, agricultural and mining customers.

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