Mexico’s Industrias Unidas again extends series A, B exchange offer

By Wendy Van Sickle

Columbus, Ohio, Jan. 7 – Industrias Unidas, SA de CV is extending its exchange offer for the company’s outstanding series A and series B 9% senior secured notes due 2023, according to a notice.

The exchange offer will now expire at 5 p.m. ET on Jan. 22, pushed back from 5 p.m. ET on Jan. 7 and, before that, from 5 p.m. ET on Dec. 20.

If the exchange offer is successful, the outstanding notes will be exchanged into series A and series B 9% senior secured variable coupon notes due 2027 provided that noteholders of at least 95% of the old notes participate in the exchange offer.

As of 5 p.m. ET on Jan. 7, the company has been advised that 90.8% of the old notes had been validly tendered and not validly withdrawn pursuant to the exchange offer.

As announced on Nov. 21, the new notes will have substantially all of the same covenants and other terms and conditions as the old notes and will have the same collateral.

Tendering noteholders will receive new notes on a 1-to-1 basis, but will additionally receive new notes with a principal amount equal to the amount of interest accrued on the old notes from and including April 30 to the settlement date of the exchange offer. The PIK payment will be made to tendering holders of old notes in lieu of a cash payment of the interest.

The company missed its interest and principal amortization payment on the old notes due Oct. 31 and does not currently have the means to repay those amounts or the future amounts that will become payable under the old notes.

The exchange offer is critical to resolving the company’s constrained liquidity and ensuring its viability.

The new notes will amortize in 13 semiannual installments with the first installment to be paid on the May 31, 2021 interest payment date.

Epiq Corporate Restructuring (646 282-2500, 866 734-9393 or tabulation@epiqglobal.com) is the information and exchange agent.

IUSA is a Mexico City-based manufacturer of copper-based and electrical products for the housing and electrical power markets.

© 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.