Cobre del Mayo will exchange 95.92% of PIK toggle notes in final tally

Chicago, May 12 – Cobre del Mayo, SA de CV announced the final results of its exchange offer and consent solicitation for its $125,228,986 outstanding PIK toggle notes due 2021 (ISINs: XS1354863612, XS1354862564), according to a press release.

The company received tenders for $120,116,745, or 95.92%, of the notes by the final deadline at 11:59 p.m. ET. on May 7.

Consents were received for the same amount of notes to amend the indenture governing the existing notes to eliminate most of the restrictive covenants. The requisite consents were received by the early deadline.

On the settlement date, the company will issue $18,718,288 in total of senior secured notes due 2026 (ISINs: XS2343881343, XS2343881772) and $106,653,522 of senior secured PIK toggle notes due 2030.

The new notes will be guaranteed by direct and indirect subsidiaries of parent company Frontera Copper Corp., SAPI de CV but will not be guaranteed by Frontera.

As previously reported, the purpose of the exchange is to better align Cobre del Mayo’s debt service requirements with its anticipated cash generation capabilities.

A recent increase in copper prices and its decision to restart mining operations in January makes the company confident it will be able to service its debt after the exchange offer.

Settlement is planned for May 13.

BCP Securities, LLC is acting as dealer manager and solicitation agent for the exchange offer and the consent solicitation. Ipreo LLC is acting as exchange agent and information agent.

The issuer is a mining company based in Mexico City.

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