Mexico's Javer solicits consents from holders of 13% senior notes

By Jennifer Chiou

New York, Oct. 28 - Servicios Corporativos Javer SAPI de CV announced the start of a consent solicitation for its 13% senior notes due 2014.

The solicitation is set to end at 5 p.m. ET on Nov. 10.

Javer is soliciting consents in connection with the intended sale of the company's series A and series B shares representing 60% of its capital stock.

On Oct. 24, Javer, Proyectos del Noreste, SA de CV - the beneficial owner of 99.99% of the company's capital stock - and Salomon Marcuschamer Stavchansky, who owns 99.9% of the capital stock of the parent company, entered into a stock purchase agreement with purchasers Southern Cross Latin America Private Equity Fund III, LP, Gestora Metevco Holding Limitada y Compañía en Comandita por Acciones, Degomex Holding, LP, Evercore Mexico Capital Partners II, LP and ARVX Capital, SA de CV.

Under the agreement, the purchasers would own capital stock representing 60% of the voting stock of Javer. Closing of the agreement depends on the solicitation as well as approval from Mexican regulatory authorities and other customary conditions.

The agreement is expected to close in November.

Under the terms of the indenture, the stock purchase agreement constitutes a change of control and would require the company to make an offer to purchase the 13% notes at 101% plus accrued interest.

Javer is looking for consents from holders of a majority of the notes to waive its obligation to make a change-of-control offer and to allow the purchasers to be permitted holders under the indenture.

Holders who submit consents will receive a consent payment of $2.50 for each $1,000 principal amount of notes.

Credit Suisse (800 820-1653 or call collect 212 538-1861) and Bank of America Merrill Lynch (888 292-0070 or call collect 646 855-3401) are the solicitation agents. Global Bondholder Services Corp. is the information agent (866 387-1500 or call collect 212 430-3774).

Javer is a homebuilder based in Nuevo Leon, Mexico.

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