Moody's puts Axtel on review

Moody's Investors Service said it placed Axtel, SA de CV's Ba3 corporate family rating and Ba3 senior unsecured rating on review with uncertain implications following the company's announcement of its intention to acquire Avantel S. de RL de CV and Avantel Infrastructura SA de CV, which will double Axtel's revenues.

The $500 million acquisition will be financed entirely with debt, the agency said.

Moody's noted its review will focus on the likelihood of the acquisition closing, terms of the financing arranged for this all debt acquisition, a full review of Avantel's future business prospects, as it is a private company today for which no information is available as well as future prospects for the long distance and data markets in Mexico.

© 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.