Grupo Papelero Scribe solicits consents to amend 8 7/8% notes due 2020

By Toni Weeks

San Luis Obispo, Calif., Sept. 12 – Grupo Papelero Scribe, SA de CV began a consent solicitation on Friday for its 8 7/8% senior guaranteed notes due 2020, according to a press release.

The company is seeking consents to amend the indenture in connection with the proposed acquisition of Corporacion Scribe, SAPI de CV and Grupo Papelero Scribe by Grupo Bio Pappel, SA de CV from Administrative Trust No. F/442.

The company is seeking consents from noteholders to amend the definition of “permitted holders” in the note indenture so that the acquisition does not constitute a change of control, which would require the company to make an offer to repurchase each holder’s notes at 101 plus accrued interest. The company needs consents representing a majority in principal amount of the outstanding notes to amend the indenture.

Holders of record as of 5 p.m. ET on Sept. 11 will receive a consent fee of $10.00 per $1,000 principal amount of notes for which a valid consent was delivered.

The consent solicitation will expire at 5 p.m. ET on Sept. 23. The company will pay the consent fee promptly after the satisfaction or waiving by the company of all of the conditions, including the closing of the acquisition and the receipt of the requisite consents. If the requisite consents are not receive prior to the expiration time, the proposed amendment will not be adopted, and the consent fee will not be paid.

Subsidiaries GPS Trading, SA de CV and Silvicultora Saraya, SA de CV are the guarantors of the notes. Deutsche Bank Trust Co. Americas is the trustee, and Deutsche Bank Luxembourg SA is Luxembourg paying agent.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is the solicitation agent. D.F. King & Co., Inc. (800 829-6551, 212 269-5550 for banks and brokers or 212 493-6940 for confirmation) is the information and tabulation agent.

Grupo Papelero Scribe is a Mexico City-based pulp producer and manufacturer of printing and writing paper.

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