Mexico's Axtel receives consents needed to amend 11% notes due 2013

By Angela McDaniels

Tacoma, Wash., Sept. 17 - Axtel, SAB de CV received enough consents from the holders of its $162.5 million outstanding principal amount of 11% senior notes due 2013 to amend the indenture governing the notes, according to a company news release.

A tender offer and consent solicitation for the notes began Sept. 2 and will expire at midnight ET on Sept. 30. The consent deadline was 5 p.m. ET on Sept. 16.

A supplemental indenture containing the amendments has been executed, and the amendments are now effective. They eliminated substantially all of the restrictive covenants, several affirmative covenants (including some reporting obligations) and events of default in the indenture and modified the covenant regarding mergers, consolidations and transfers of the company's properties and assets substantially as an entirety.

As of the consent date, holders of about $128.5 million principal amount, or 79%, of the notes had tendered their notes and delivered consents.

The company is offering 105.75% of par plus accrued interest up to but excluding the settlement date. The payment includes a consent payment equal to 3% of par for notes tendered by the consent deadline.

Holders who tender must consent to the amendments.

The consummation of the tender offer and consent solicitation remains subject to the receipt of financing.

Credit Suisse Securities (USA) LLC (800 820-1653) is the dealer manager, and D.F. King & Co., Inc. (800 967-4607) is the information agent.

Axtel is a fixed-line, integrated telecommunications company based in San Pedro Garza Garcia, Mexico.

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