SAN PEDRO GARZA GARCIA, Mexico--(BUSINESS WIRE)--Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) (“AXTEL” or “the Company”), a Mexican fixed-line integrated telecommunications company, today announced the acceptance of $82,542,000 aggregate principal amount of 7.625% Senior Notes due 2017 (the “2017 Notes”) that were tendered on or prior to December 6, 2013, pursuant to the exchange offers (the “Exchange Offers”) described in the confidential exchange offering memorandum dated November 22, 2013, as supplemented on November 27, 2013 (the “Exchange Offering Memorandum”) and related Letter of Transmittal. The Company will issue $81,269,000 of its Senior Secured Notes due 2020 (the “Exchange Notes”) in exchange for the accepted 2017 Notes and settlement thereof is expected to take place on December 13, 2013.
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The consummation of the Exchange Offers is subject to the conditions set forth in the Exchange Offering Memorandum and related Letter of Transmittal. The Exchange Offers for the 2017 Notes and 9.00% Senior Notes due 2019 (the “2019 Notes”, and together with the 2017 Notes, the “Old Notes”) are scheduled to expire at 11:59 p.m., New York City time, on December 20, 2013 (the “Expiration Date”), unless extended by the Company.
The complete terms and conditions of the Exchange Offers are described in the Exchange Offering Memorandum, copies of which may be obtained by eligible holders by completing and returning a letter of eligibility confirming that they are Eligible Holders at the website www.dfking.com/axtel, or by contacting D.F. King & Co., Inc., the information agent for the Exchange Offers, at 48 Wall Street, 22nd Floor, New York, New York 10005, (212) 269-5550 (collect) or (800) 967-4612 (toll free), or firstname.lastname@example.org.
The Exchange Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Each Exchange Offer is only being made to registered holders of Old Notes that are (i) “qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, (ii) outside the United States and are persons who are not “U.S. persons,” as that term is defined in Rule 902 under the Securities Act and (iii) “accredited investors,” as that term is defined in Rule 501(a) under the Securities Act, that are institutions of the types described in clauses (1), (2), (3) and (7) of Rule 501(a) (together “Eligible Holders”).
This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy Exchange Notes nor an offer to purchase Old Notes. The Exchange Offers are being made solely by means of the Exchange Offering Memorandum and the related Letter of Transmittal.
AXTEL is a Mexican telecommunications company with significant growth in the broadband segment, and one of the leading companies in information and communication technologies solutions in the corporate, financial and government sectors. The Company serves all market segments - corporate, financial, government, wholesale and residential with the most robust offering of integrated communications services in Mexico. Its world-class network consists of different access technologies like fiber optic, fixed wireless access, point to point and point to multipoint links, in order to offer solutions tailored to the needs of its customers.
AXTEL’s shares, represented by Ordinary Participation Certificates or CPOs, trade on the Mexican Stock Exchange under the symbol 'AXTELCPO' since 2005.
This release contains certain forward-looking statements regarding the future events or the future financial performance of AXTEL. These statements reflect management's current views with respect to future events or financial performance, and are based on management's current assumptions and information currently available and are not guarantees of the Company's future performance. The timing of certain events and actual results could differ materially from those projected or contemplated by the forward-looking statements due to a number of factors including, but not limited to those inherent to operating in a highly regulated industry, strong competition, commercial and financial execution, economic conditions, among others.