Grupo Famsa begins tender offer, consent bid for 11% notes due 2015

By Susanna Moon

Chicago, May 15 - Grupo Famsa SAB de CV said it began a tender offer and consent solicitation for its outstanding 11% senior notes due 2015.

The total purchase price will be $1,068.75 for each $1,000 principal amount of notes tendered by 5 p.m. ET on May 29.

The total payment consists of a $1,038.75 tender payment plus a $30.00 early tender payment.

Holders also will receive accrued interest.

The tender offer will end at midnight ET on June 12, with early settlement set for May 31.

Tendered notes may be withdrawn by the early tender date.

The company also is soliciting consents to amend the notes to eliminate most of the restrictive covenants and events of default and shorten the minimum redemption notice period to six business days from 30 days, with an additional minimum notice of three business days to the trustee, according to a company press release.

Holders who tender their notes must deliver consents, and holders may not deliver consents without tendering the notes.

The completion of the tender offer and consent solicitation is conditioned on the company obtaining consents for at least a majority of the outstanding notes.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 431-9643 or banks and brokers call collect at 212 269-5550) is the tender agent and information agent.

Grupo Famsa is a retail company based in Monterrey, Mexico.

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