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 that the Company has obtained 65% aggregate
participation as of the expiration of the Early Tender Date with respect
to the exchange offers being made by its subsidiary Axtel Capital, S. de
R.L. de C.V. to exchange any and all of AXTEL’s outstanding Senior Notes
due 2017 and 2019 (the “Old Notes”) for new Senior Secured Notes and
Senior Secured Convertible Dollar-indexed Notes, both due in 2020 (the
“New Notes”), and a cash payment (the “Exchange Offers”).
Additionally, the Company is also pleased to announce the signing of
definitive agreements with MATC Digital, S. de R.L. de C.V., a
subsidiary of American Tower Corporation (“American Tower”), for the
sale of 883 telecommunication sites for approximately US$250 million. As
previously informed, AXTEL is agreeing to lease back space on these
telecommunication sites from American Tower for initial minimum lease
terms ranging from 6 to 15 years depending on the technology
installation at each site. The closing of this transaction is
conditioned upon and expected to occur concurrently with the closing of
the Exchange Offers on January 31, 2013.
Mr. Felipe Canales, AXTEL´s Chief Financial Officer, stated, “We are
very pleased with the tower sale transaction. Not only because it is a
key element of the recapitalization strategy we announced mid last year,
but also because we are partnering with American Tower, a world-class
company that will significantly contribute to enhance our operating
performance”. Mr. Canales went on to state, “We are also in the final
stage of successfully closing the notes’ exchange offer. This will
strengthen AXTEL’s capital structure and permit the Company to continue
implementing its key strategic initiatives."
Other important information
The consummation of the Exchange Offers and related consent
solicitations are subject to the conditions set forth in the Offer to
Exchange. The complete terms and conditions of the Exchange Offers and
consent solicitations are described in the Offer to Exchange, copies of
which may be obtained by eligible holders by contacting D.F. King & Co.,
Inc., the information agent for the exchange offers and consent
solicitations, 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 New Notes have not been registered under the Securities Act, 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
This announcement is for informational purposes only and does not
constitute an offer to sell or a solicitation of an offer to buy the New
Notes nor an offer to purchase Old Notes nor a solicitation of Consents.
The Exchange Offers and Consent Solicitations are being made solely by
means of the Offer to Exchange and the related Consent and Letter of
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
AXTEL's shares, represented by Ordinary Participation Certificates or
CPOs, trade on the Mexican Stock Exchange under the symbol 'AXTELCPO'
This release contains certain forward-looking statements regarding the
future events or the future financial performance of AXTEL that are made
pursuant to the safe harbor for forward-looking statements provided by
the Private Securities Litigation Reform Act of 1995. 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.
Adrian de los Santos, +52(81)
Source: Axtel, S.A.B. de C.V.
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