Mexico’s Controladora Mabe solicits consents for 7 7/8% notes due 2019

By Susanna Moon

Chicago, Oct. 27 – Controladora Mabe, SA de CV said it began a consent solicitation for its 7 7/8% senior guaranteed notes due 2019.

The proposed amendments are in connection with the completion of the purchase by AB Electrolux of General Electric Co.’s major appliances division, according to a company press release.

The acquisition constitutes a change of control under the notes indenture, which would require the company to offer to repurchase the notes at 101 plus accrued interest, the company noted.

The company is seeking consents to amend the definition of change of control in the notes indenture so that the acquisition does not constitute a change of control.

General Electric expects the acquisition to close in 2015, the release noted.

The consent solicitation will end at 5 p.m. ET on Nov. 7. Holders must be of record as of 5 p.m. ET on Oct. 24.

The solicitation is conditioned on the company receiving consents for a majority of the outstanding notes.

The consent payment will be $1.25 in cash for each $1,000 principal amount.

J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279 collect) is the solicitation agent. D.F. King & Co., Inc. (877 297-1744 or 212 269-5550 banks and brokers) is the information and tabulation agent.

Controladora Mabe manufactures ranges, refrigerators, clothes dryers and washing machines and is based in Mexico City.

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