Mexico’s Controladora Mabe starts tender offer for 5.6% notes due 2028

Chicago, June 15 – Controladora Mabe SA de CV started a cash tender offer for its $370 million outstanding 5.6% guaranteed senior notes due 2028 (Cusips: 21240BAD3, P3100SAC8) on Wednesday, according to a press release.

The company is also soliciting consents to amend the notes.

The proposed amendments would amend the indenture to reduce the minimum notice periods required for an optional redemption of the notes and eliminate substantially all of the restrictive covenants and certain events of default.

Consents are needed from noteholders representing a majority of the notes.

Noteholders who tender their notes are deemed to have given consent and noteholders cannot consent without tendering their notes.

The consent fee will be paid even if the company does not receive tenders/consents from a majority of noteholders.

Pricing will be determined using the 2 5/8% U.S. Treasury due May 31, 2027 plus 145 basis points.

The total consideration will include a $50 consent payment only payable to noteholders who tender their notes by the early deadline.

Pricing will take place at 11 a.m. ET on June 29.

The early tender deadline is 5 p.m. ET on June 29, which is also the consent payment and withdrawal deadline.

The initial settlement date is July 5.

The offer expires at 11:59 p.m. ET on July 14.

Settlement would be July 19.

The offer is subject to the satisfaction of a new debt condition.

BNP Paribas Securities Corp. (888 210-4358) and Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) are the dealer managers for the offer and solicitation agents for the consent solicitation.

Global Bondholder Services Corp. is the tender agent information agent for the offer and consent solicitation (855 654-2015).

Mabe is a Mexico City-based manufacturer of ranges, refrigerators, clothes dryers and washing machines.

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