Mexico’s Industrias Unidas gets tenders for 94% of notes, waives minimum condition

By Marisa Wong

Morgantown, W.Va., Oct. 25 – Industrias Unidas, SA de CV announced it received tenders for about 94% of its series A and series B 11˝% senior secured notes due 2016 as of 5 p.m. ET on Oct. 24, the expiration of its exchange offer that began on Sept. 12.

The company is offering series A and series B 9% senior secured notes due 2023 in exchange for the 11˝% notes, as previously reported.

The company will accept for exchange all of the tendered notes and has waived the condition that at least 95% principal amount of the 11˝% notes be tendered, according to a Tuesday press release.

The expiration time had been extended from midnight ET on Oct. 7. As of the original deadline, 92.7% of the notes had been tendered, according to a previous news release.

The company said it will issue $327,463,768 of new 9% notes and pay $21,084,773 in cash to redeem the outstanding 11˝% notes. The company expects to settle the offer on Oct. 31.

The company said before that it is carrying out the transaction in order to refinance the existing notes.

IUSA was not able to pay principal and interest on the notes and believed it was not likely to find new financing, according to a Sept. 13 news release.

By making the exchange offer, the company hoped to avoid a concurso mercantil proceeding.

The company had said the exchange would also avoid “contentious litigation” that could disrupt business and damage its value.

For each $1.00 principal amount of existing notes, IUSA offered $1.00 of new notes.

Holders who participated 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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.