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, announced today the successful pricing of $150 million of add-on notes to its U.S. Dollar Denominated Senior Secured Notes due 2020 (the “2020 Notes”). The 2020 Notes were originally issued on January 31, 2013 and currently bear interest at 8.00% (increasing to 9.00% on January 31, 2015). The add-on notes will be issued at a price of 100.25% for a yield to maturity of 8.85%.
The add-on notes were sold pursuant to a private placement which is expected to close on September 17, 2014, subject to customary closing conditions. The proceeds of the transaction will be used principally for capital investments in telecommunication and information technologies mostly related to integrated-services projects for corporate and government customers, for working capital in support of such projects and for general corporate purposes.
Fungibility of 2020 Notes
The add-on notes to be issued in connection with this transaction will be fungible for U.S. federal income tax purposes with previously issued and outstanding 2020 Notes.
Other important information
The 2020 Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, and will therefore be subject to substantial restrictions on transfer. This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the add-on notes or any 2020 Notes.
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 a 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 and economic conditions, among others.