Central American Bottling gives early results of tender offer, solicitation

By Mary-Katherine Stinson

Lexington, Ky., Jan. 20 – Central American Bottling Corp. announced the early results of its cash tender offer for any and all of the $700 million outstanding 5¾% senior guaranteed notes due 2027, according to a press release Thursday.

As of the early deadline of 5 p.m. ET on Jan. 19, $522,907,000 of the notes, or 74.7%, have been validly tendered and not withdrawn, according to the tender and information agent.

Noteholders who tendered before the early deadline will receive $1,028.75 per $1,000 note, which includes an early tender premium of $30, for each $1,000 of principal together with accrued and unpaid interest.

The early settlement date is expected to be on or around Jan. 27.

The offer expires at 11:59 p.m. ET on Feb. 2.

Noteholders who tender before the expiration of the offer will now receive $998.75 for each $1,000 of principal plus accrued and unpaid interest.

The company was also conducting a consent solicitation to substantially eliminate all restrictive covenants and certain related default events in the indenture and to shorten the minimum notice period for optional redemption to three days from the previous 10 days.

The company stated it has executed a supplemental indenture to effect the proposed amendments approved in the consent solicitation which became effective immediately upon execution. However, the amendments will not become operative until the early settlement date.

The supplemental indenture is binding for all noteholders including those not participating in the tender offer.

The tender offer is subject to the satisfaction of or waiver of certain conditions including the successful completion of the company’s concurrent offering of new notes.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and JPMorgan Securities LLC (866 846-2874, 212 834-7279) are the dealer managers and solicitation agents for the tender offer and consent solicitation.

D. F. King & Co., Inc. is the tender and information agent (888 605-1956, 212 269-5550 or cbc@dfking.com).

Central American Bottling produces, distributes and markets beverage products that include brands owned by PepsiCo and Ambev and its proprietary brands, including its wellness brand LivSmart. The company is based in the British Virgin Islands.

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