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Mexico’s Grupo Kaltex offers cash in tender offer for 8 7/8% notes
Chicago, Jan. 26 – Grupo Kaltex SA de CV announced a cash tender offer for any and all of the $220 million outstanding principal amount of 8 7/8% senior notes due 2022 (Cusips: 40054FAA5, P4953VAJ2), according to a press release.
The company is offering to pay $1,000 per $1,000 note, inclusive of a $30 early tender premium payable to noteholders who tender their notes by the early deadline. Accrued interest will also be paid to the applicable settlement date.
Grupo Kaltex is also soliciting consents for the notes to eliminate substantially all of the restrictive covenants, as well as various events of default and related provisions contained in the indenture and release the collateral securing the notes under the indenture as described in the offer to purchase.
Tendering noteholders must consent to the proposed amendments and vice versa. The company needs consents from noteholders holding 75% of the outstanding principal amount of the notes.
The tender offer is conditioned on the company receiving the necessary majority consent, the execution of the supplemental indenture and the consummation of a new notes offering from the company and/or the execution by the company of a Mexican peso-denominated secured loan facility before the early settlement date.
The tender time is 5 p.m. ET on Feb. 8, also the withdrawal and revocation deadline.
Early settlement is planned for Feb. 11.
The tender offer will expire at 11:59 p.m. ET on Feb. 23.
Final settlement is planned for Feb. 25.
Morgan Stanley & Co. LLC is the dealer manager for the tender offer and the solicitation agent for the consent solicitation (800 624-1808, 212 761-1057).
D.F. King & Co., Inc is the information and tender agent for the offer (800 848-3405, 212 269-5550, kaltex@dfking.com).
Grupo Kaltex is a textile company based in Mexico.
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