Mexico's Metalsa kicks off cash tender offer, consent solicitation

Chicago, April 19 – Metalsa, SA de CV started a cash tender offer for any and all of its outstanding $300 million 4.9% senior notes due 2023 (Cusips: 59132VAA6, P6638MAA9) and a related consent solicitation, according to a press release.

The company is offering to buy the notes for $1,065 per $1,000 note, an amount that includes a $30 early tender payment. Noteholders who tender after the early deadline will only receive $1,035 per note. Interest to the applicable settlement date will be paid in either case.

Noteholders who tender notes must deliver consents and vice versa.

The offer is conditioned upon the receipt of consent from a majority of noteholders and a new offering of Rule 144A and Regulation S notes.

Tendering noteholders who wish to subscribe for new notes can obtain an allocation identifier code, although the inclusion of one will not entitle the noteholder to any special consideration.

Consent solicitation

Metalsa is soliciting consents from noteholders to eliminate substantially all of the restrictive covenants including various events of default and related provisions in the indenture for the notes, to reduce the minimum required notice period for redemption to three business days from 30 business days and to amend the covenant about consolidation, merger, sale or conveyance to allow the company to effect a corporate reorganization.

A majority of noteholders must consent to effect the amendments.

Details

The early tender deadline is 5 p.m. ET on April 30, also the withdrawal deadline.

The offer will expire at 11:59 p.m. ET on May 14.

BofA Securities, Inc. and Citigroup Global Markets Inc. are the dealer managers for the offer.

Global Bondholder Services Corp. is the information agent and tender agent (212 430-3774, 866 470-3700, contact@gbsc-usa.com).

Metalsa is a variable capital corporation that produces structural components for automotive light vehicle and commercial vehicles. The company is based in Monterrey, Mexico.

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