By Angela McDaniels
Tacoma, Wash., Sept. 10 – Axtel, SAB de CV priced a $150 million add-on to its senior secured notes due 2020 at 100.25 for a yield to maturity of 8.85%, according to a company news release.
The 2020 notes were originally issued on Jan. 31, 2013 with an initial interest rate of 7%. The interest rate increased to 8% on Jan. 31, 2014 and will increase to 9% on Jan. 31.
The company said it will use the proceeds principally for capital investments in telecommunication and information technologies mostly related to integrated-services projects for corporate and government customers, for working capital in support of such projects and for general corporate purposes.
The additional notes were sold in a private placement and have not been registered under the Securities Act of 1933. They will be fungible for U.S. federal income tax purposes with the previously issued and outstanding notes.
Axtel is a telecommunications company based in San Pedro Garza Garcia, Mexico.
| Issuer: | Axtel, SAB de CV
|
| Issue: | Senior secured notes
|
| Amount: | $150 million add-on
|
| Maturity: | 2020
|
| Coupon: | Currently 8%; steps up to 9% on Jan. 31
|
| Price: | 100.25
|
| Yield: | 8.85%
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 17
|
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