Mexico’s Total Play refinances $519 million of 7˝% notes due 2025

By Marisa Wong

Los Angeles, April 19 – Total Play Telecomunicaciones, SAPI de CV has successfully concluded an agreement to refinance $519 million, or 90%, of its $575 million 7˝% senior notes due 2025 (Cusip: 89157FAA8, P9190NAB9) into new senior notes due 2028, according to a Friday press release.

The amount refinanced is the sum of the private exchange of $213.5 million of the 2025 notes conducted on Feb. 21 and the $305.5 million of tendered 2025 notes accepted under an exchange offer launched on March 22.

After the private exchange, $361,514,000 principal amount of the 2025 notes was outstanding, and $304.5 million was tendered by the early tender date and accepted for exchange.

The early tender date was 5 p.m. ET on April 9, previously extended from 5 p.m. ET on April 5. The exchange offer and related consent solicitation expired at 11:59 p.m. ET on April 18.

As previously announced, the company offered to exchange the 2025 notes for 10˝% senior secured notes due 2028.

Holders were offered a par exchange if they tendered their notes early. Late tendering holders were offered a consideration of $950 per $1,000 note.

The new notes are secured by designated receivables and have an increasing amortization schedule of 20% in 2026, 30% in 2027 and 50% in 2028.

The new notes will be listed in Singapore.

Terms of the new notes also include an equity clawback of up to 40% at 110.5.

Call protection will include the greater of 101 or a Treasuries plus 50 basis points make-whole premium before July 1, 2025. The notes may be redeemed after July 1, 2025 at 105.25, then 102.625 the following year and then at par.

The company will also be creating a reserve account to guarantee coupon payments, additional to the one established in the source of payment trust that covers the entire payment of any subsequent coupon, after the completion of the preceding payment.

The conditions of the current exchange offer were the same as the February private offer.

Ipreo LLC is the information agent and exchange agent (212 849-3880, 888 593-9546, ipreo-exchangeoffer@ihsmarkit.com).

Jefferies LLC is the dealer manager and solicitation agent (212 284-2542).

Total Play is a Mexico City-based telecom.

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