Mexico's Metalsa receives $183.12 million total tenders of 4.9% notes

By Wendy Van Sickle

Columbus, Ohio, May 17 – Metalsa, SA de CV received tenders for $183.12 million of notes by the final deadline of its cash tender for any and all of its outstanding $300 million 4.9% senior notes due 2023 (Cusips: 59132VAA6, P6638MAA9) that was launched with a related consent solicitation, according to a press release.

The offer expired at 11:59 p.m. ET on May 14.

The total figure was up slightly from the figure at the early deadline, 5 p.m. ET on April 30, which was $181.32 million.

The company was offering to buy the notes for $1,065 per $1,000 note, an amount that included a $30 early tender payment. Noteholders who tendered after the early deadline will only receive $1,035 per note. Interest to the applicable settlement date was to be paid in either case.

Noteholders who tendered notes had to deliver consents and vice versa.

The offer was conditioned upon the receipt of consent from a majority of noteholders and a new offering of Rule 144A and Regulation S notes.

The new notes settled on May 4.

Tendering noteholders who wished to subscribe for new notes could obtain an allocation identifier code, although the inclusion of one did not entitle the noteholder to any special consideration.

Consent solicitation

A majority of noteholders had to consent to enact the amendments in the consent solicitation.

Noteholders holding more than half the notes did tender their notes by the early deadline; therefore, the company said it would execute a supplemental indenture with the amendments.

Metalsa was soliciting consents from noteholders to eliminate substantially all of the restrictive covenants including various events of default and related provisions in the indenture for the notes, to reduce the minimum required notice period for redemption to three business days from 30 business days and to amend the covenant about consolidation, merger, sale or conveyance to allow the company to effect a corporate reorganization.

Details

The tender offer and consent bid were announced on April 19.

BofA Securities, Inc. and Citigroup Global Markets Inc. are the dealer managers for the offer.

Global Bondholder Services Corp. is the information agent and tender agent (212 430-3774, 866 470-3700, contact@gbsc-usa.com).

Metalsa is a variable capital corporation that produces structural components for automotive light vehicle and commercial vehicles. The company is based in Monterrey, Mexico.

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