Mexico’s Becle announces tender offer, solicitation for 3¾% notes

Chicago, Sept. 27 – Becle, SAB de CV announced that Morgan Stanley & Co. LLC started a cash tender offer for any and all of the $500 million outstanding 3¾% senior notes due 2025 (Cusips: 47215TAA6, P59705AA4) with a related consent solicitation, according to a press release.

Pricing for the offer will be based on the 0.375% U.S. Treasury due April 30, 2025 plus 25 basis points.

The total hypothetical consideration, as determined at 11 a.m. ET on Sept. 24, was $1,098.67 per $1,000 note.

The total consideration will include a consent payment of $50 per $1,000 note, payable to noteholders who tender their notes by the early deadline.

Morgan Stanley is soliciting consents to amend the indenture to reduce the notice periods required for optional redemption of the notes and eliminate certain of the restrictive covenants and events of default applicable to the notes.

Noteholders who tender their notes will be deemed to have given consent. Consents cannot be delivered without tendered notes. Any revocation of a consent must be accompanied by withdrawing the tendered notes.

The consent payment will be made whether or not the requisite consents are received.

The tender offer is not conditioned upon the receipt of the requisite consents.

Interest will also be paid to the applicable settlement date.

The early deadline for the offer is 5 p.m. ET on Oct. 8, also the consent payment and withdrawal deadline.

The initial settlement date is Oct. 12.

Noteholders may tender their notes until 11:59 p.m. ET on Oct. 25.

Notes tendered after the early deadline will be purchased on Oct. 27.

D.F. King & Co., Inc is tender agent and the information agent for the consent solicitation (800 884-5101).

Morgan Stanley (212 761-1057, 800 624-1808), Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and Goldman Sachs & Co. LLC (212 357-1452, 800 828-3182) are the dealer managers.

The offer is being made with a concurrent offering of senior notes.

It is intended that the notes purchased by Morgan Stanley at the initial settlement date will be exchanged by Morgan Stanley to Becle for a decrease in the proceeds payable by Morgan Stanley and the other initial purchasers in respect of the new notes.

The notes purchased by Morgan Stanley at the final settlement date will be exchanged by Morgan Stanley for cash to be paid by Becle.

Becle is a Mexico City-based producer, bottler and distributor of alcoholic and non-alcoholic beverages.

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