Mexico’s Metalsa starts consent solicitation for 4.9% senior notes

Chicago, June 14 – Metalsa, SA de CV announced the beginning of a solicitation of consents for proposed amendments to the indenture dated April 24, 2013 for its 4.9% senior notes due 2023, according to a company notice.

The proposed amendments would provide an exception from the merger and sale covenant for Metalsa Beteiligungs GmbH and Metalsa Automotive GmbH and amend the covenant providing for additional note guarantees so that the company will only be required to add any future significant subsidiary as a subsidiary guarantor to the extent necessary to satisfy the guarantee requirement which will consist of the company and the subsidiary guarantors representing at least 80% of the company's consolidated EBITDA after giving effect to the acquisition, creation or capitalization of such future significant subsidiary.

These changes would offer the company greater flexibility in exploring strategic options with regard to its body and chassis division and in managing its overall product portfolio.

Consents representing a majority of the aggregate principal amount of notes outstanding are necessary to amend the indenture.

The solicitation, announced Friday, will expire at 5 p.m. ET on June 27.

A consent fee of $2.50 per $1,000 principal amount of notes will be paid to each holder of record of notes as of 5 p.m. ET on June 13 who has delivered a valid consent prior to the expiration time.

The consent fee is expected to be paid no later than two business days following the expiration time.

The company intends to promptly execute the amended second indenture, if the necessary consents are received on or prior to the expiration time.

BofA Securities, Inc. (toll-free: 888 292 0070 or collect: 646 855 8998) is acting as solicitation agent and D.F. King & Co., Inc. (toll-free 877 536 1559 or banks and brokers: 212 269 5550) is acting as information and tabulation agent for the solicitation.

Metalsa is a structural components company based in Apodaca, Mexico.

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