Mexico’s Axtel gives early results, ups tender cap for 6 3/8% notes

By Mary-Katherine Stinson

Lexington, Ky., Jan. 31 – Axtel, SAB de CV announced the early results of its tender offer for its 6 3/8% senior notes due 2024 (Cusips: 05462GAJ3, P0606PAC9), according to a press release.

As of the early tender deadline, 5 p.m. ET on Jan. 30, also the withdrawal deadline, the company received tenders from the holders of $77,737,000 of the total outstanding principal amount of the notes.

In connection with the acceptance of all the tendered notes for purchase, the company announced an increase in the tender cap to $120 million from the original $75 million.

The company also announced a decision to extend the early deadline through the expiration of the offer at 11:59 p.m. ET on Feb. 13.

The withdrawal deadline has not been extended and has passed.

As previously reported, the company is offering to pay a total tender consideration of $863.75 per $1,000 note, inclusive of a $50 early tender payment, which will now be paid to all noteholders who tender their notes by the expiration of the offer because of the extension.

Interest will also be paid to the relevant payment date.

Tenders may be prorated.

It was announced on Jan. 17, at the launch of the offer, that there were $402,223,000 of the notes outstanding.

Early settlement is planned for Feb. 2.

The final payment date will be soon after the final acceptance date.

HSBC Securities (USA) Inc. (212 525-5552, 888 HSBC-4LM) and Scotia Capital (USA) Inc. (212 225-5501, 800 372-3930) are the dealer managers for the tender offer.

D.F. King & Co., Inc. has been appointed as the tender agent and information agent (800 870-0653, 212 269-5550, axtel@dfking.com).

Axtel is a telecommunications company based in San Pedro Garza Garcia, Mexico.

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