Mexico's Empresas ICA gets early tenders for 59.96% of 8 3/8% notes

By Marisa Wong

Madison, Wis., May 29 - Empresas ICA, SAB de CV said that holders had tendered $209,865,000, or 59.96%, of its $350 million outstanding 8 3/8% senior notes due 2017 as of 5 p.m. ET on May 28, the early tender deadline of its previously announced cash tender offer.

Empresas ICA also announced that it has increased the maximum principal amount of notes that it is offering to purchase in the tender offer to $200 million from $150 million.

Because the total amount of notes tendered exceeds $200 million, the notes accepted for purchase will be prorated. In addition, holders who tender notes after the early deadline will not have any of their notes accepted for purchase unless the company further increases the tender cap.

Except for the increase, all other terms and conditions of the tender offer remain unchanged.

The tender offer began on May 14 and is set to expire at midnight ET on June 11.

The total purchase price is $1,067.50 for each $1,000 principal amount of notes tendered the early tender deadline. The total amount includes an early tender payment of $30.00 per $1,000 principal amount.

Those tendering after the early deadline were to receive $1,037.50 per $1,000 of notes.

Holders also will receive accrued interest.

The settlement date for the early tendered notes is expected to be June 2.

The offer is conditioned on the company selling at least $500 million of senior notes in a concurrent offering, according to a prior press release.

As reported by Prospect News, Empresas ICA priced $700 million of 8 7/8% senior notes due 2024 on May 21.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147 collect) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527 collect) are the dealer managers. D.F. King & Co., Inc. (800 549-6650 or 212 269-5550 collect for banks and brokers) is the tender agent and information agent.

Empresas ICA is a Mexico City-based construction company.

© 2015 Prospect News.
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