Mexico’s Grupo Papelero Scribe gets needed consents for 8 7/8% notes

By Jennifer Chiou

New York, Sept. 24 – Grupo Papelero Scribe, SA de CV announced the successful conclusion to the consent solicitation for its 8 7/8% senior guaranteed notes due 2020.

The solicitation expired at 5 p.m. ET on Sept. 23. It began on Sept. 12.

According to a press release, the company received consents from holders of a majority of notes, allowing it to amend the note 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.

As previously reported, the company was 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.

Holders of record as of 5 p.m. ET on Sept. 11 will receive a consent fee of $10 per $1,000 principal amount of notes for which a valid consent was delivered.

The company said it 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. The acquisition is expected to close in the fourth quarter.

Subsidiaries GPS Trading, SA de CV and Silvicultora Saraya, SA de CV are 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) was the solicitation agent. D.F. King & Co., Inc. (800 829-6551, 212 269-5550 for banks and brokers or 212 493-6940 for confirmation) was 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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