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
. 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 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 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 Transmittal.