Grupo Kaltex formally closes exchange offer for 8 7/8% notes due 2022

By William Gullotti

Buffalo, N.Y., Dec. 20 – Mexico’s Grupo Kaltex, SA de CV announced the closure of the exchange offer for its outstanding 8 7/8% senior notes due 2022 (Cusips: 40054FAA5, P4953VAJ2) that expired on Dec. 12, according to a press release on Tuesday.

As previously reported, the company invited holders to exchange up to $118 million of the existing notes for up to $118 million of 14½% senior notes due 2025 to be issued by Grupo Kaltex and guaranteed by some of its subsidiaries, plus an accrued interest payment and an exchange premium.

All conditions to the consummation of the exchange offer have been satisfied or waived.

As previously reported on the expiration date, $126,056,000 in aggregate principal amount of the existing notes had been validly tendered.

As the tendered notes exceeded the cap, tenders were accepted on a prorated basis, subject to the offer’s provisions regarding proration, rounding and minimum denominations.

As previously reported, holders who tendered their existing notes for exchange and whose notes are accepted will receive, for each $1,000 principal amount of existing notes, $1,000 of new notes, a cash payment equal to the amount of interest accrued from and including Oct. 11 to but excluding the settlement date of the exchange offer and a $15.00 cash payment.

Any existing notes tendered and not accepted for exchange because of proration, together with any other existing notes not tendered in the exchange offer, were redeemed in full on Dec. 20, which is the settlement date.

According to the press release, in accordance with the previously reported settlement conditions, the full outstanding aggregate principal amount of the existing notes has either been exchanged for new notes or repaid in cash.

The aggregate principal amount of the new notes issued and outstanding is $117,867,000.

BCP Securities, Inc. is dealer manager for the Rule 144A and Rule 902 exchange offer.

D.F. King & Co., Inc. (888 541-9895, 212 269-5550; kaltex@dfking.com; www.dfking.com/kaltex) is information and exchange agent.

Grupo Kaltex is a textile company based in Mexico.

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