Mexico's Iusacell to issue 9% notes under approved reorganization plan

By Caroline Salls

Pittsburgh, June 30 - Grupo Iusacell, SA de CV planned to issue $103.23 million of 9% senior secured notes due 2017 on or around June 30 under a reorganization agreement filed with the Ninth District Civil Court of the First Circuit in Mexico City, according to a T-3 filed Thursday with the Securities and Exchange Commission.

The principal amount of the 9% notes issuance could be increased as a result of the capitalization of a restructuring fee and other fees payable by Iusacell.

Under the reorganization agreement, which has been approved by the Mexican court, $206.46 million principal amount of the company's outstanding 10% senior secured notes due 2013 will be cancelled, and holders will receive $500 million principal amount of new notes for each $1,000 principal amount of existing notes held.

On the first interest payment date for the new notes following their issuance, noteholders will also receive a payment in kind equal to $0.25 of notes per $1,000 principal amount of new notes for each day from Jan. 1, 2011 through the issuance date.

In addition, holders of existing notes who entered into lock-up agreements before Iusacell's concurso mercantil proceeding began will receive a payment in kind in the form of an additional $45 of notes for each $1,000 of existing notes held immediately before the issuance date.

Iusacell is a cell phone company based in Mexico City.

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