Grupo Iusacell Celular launches exchange offer for tranche A and B loans, 10% notes due 2004

By Caroline Salls

Pittsburgh, May 25 - Grupo Iusacell, SA de CV principal operating subsidiary Grupo Iusacell Celular launched a solicitation of consents to exchange its tranche A bank loans for new senior floating-rate first-lien notes due 2011 and its tranche B bank loans and senior notes for new 10% senior subordinated second-lien notes due 2012, according to a company news release.

Consents are being solicited from holders of the company's $190 million of tranche A bank loans, $76 million of tranche B bank loans and $150 million of 10% senior notes due 2004.

The exchange offer will expire at 5 p.m. ET on June 29.

The new first-lien notes will bear interest at three-month Libor plus 400 basis points.

Iusacell Celular said it intends to complete the exchange through either a voluntary exchange or the filing of a plan of reorganization under the Mexican Business Reorganization Act.

The majority of the debtholders have already agreed to tender their debt and grant their consents in the exchange offer.

The information and exchange agent for the exchange offer is Bondholder Communications Group (44 207-382-4580 in London or 212 809-2663 in New York).

Iusacell is a Mexico City cell phone company.

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