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Mexico’s IUSA gets tenders for 93% of 11˝% notes so far, extends offer
By Angela McDaniels
Tacoma, Wash., Oct. 10 – Industrias Unidas, SA de CV extended the exchange offer for its series A and series B 11˝% senior secured notes due 2016 to 5 p.m. ET on Oct. 24 from midnight ET on Oct. 7, according to a company news release.
As of the original deadline, 92.7% of the notes had been tendered in the offer.
As previously reported, the company is offering series A and series B 9% senior secured notes due 2023 in exchange for the 11˝% notes.
The company said it is carrying out the transaction in order to refinance the existing notes.
IUSA is not able to pay principal and interest on the notes and believes it is not likely to find new financing, according to a Sept. 13 news release.
By making the exchange offer, it hopes to avoid a concurso mercantil proceeding.
The company said the exchange will also avoid “contentious litigation” that could disrupt business and damage its value.
For each $1.00 principal amount of existing notes, IUSA is offering $1.00 of new notes.
Holders who participate will also receive a PIK payment of new notes for the accrued interest on the existing notes from Aug. 15. No cash payments will be made for accrued interest.
The new notes will amortize in 12 semiannual installments starting one year after the initial interest payment, which will be six months after settlement of the exchange.
The new notes will have “substantially the same covenants” and other terms and conditions as the existing notes and will be secured by the same collateral once the existing notes are repaid.
Completion of the exchange is subject to at least 95% of the existing notes being tendered.
Epiq Corporate Restructuring (646 282-2500, 866 734-9393 or tabulation@epiqsystems.com) is the information and exchange agent.
IUSA is a Mexico City-based manufacturer of copper-based and electrical products for the housing and electrical power markets.
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