Navios South American to redeem any 9¼% notes not tendered in offer

By Angela McDaniels

Tacoma, Wash., April 22 - Navios South American Logistics Inc. and wholly owned finance subsidiary Navios Logistics Finance (US) Inc. plan to discharge and redeem any of their outstanding 9¼% senior notes due 2019 that are not purchased in their tender offer, according to a company press release.

The tender offer and redemption will be funded with the proceeds of the companies' $375 million issue of 7¼% senior notes due 2022, which priced at par on April 8 and settled April 22.

As previously reported, a tender offer for the notes began April 8 and will end at midnight ET on May 5.

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 notes.

Holders who tendered their notes at or prior to midnight ET on April 21, the consent payment deadline, were required to consent to the proposed amendments.

The companies will pay $1,076.37 per $1,000 principal amount of notes. This includes a cash consent payment of $30.00 per $1,000 principal amount of notes tendered at or prior to the consent payment deadline.

Holders will also be paid accrued interest up to but excluding the applicable payment date.

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

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.

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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