Mexican fixed-line operator Axtel has launched a reopening of its 2020 notes by issuing an additional US$150m.
The notes were originally placed in January 2013 and carry an annual 8% coupon due to increase to 9% on 31 January 2015.
The add-on notes…
Mexican fixed-line operator Axtel has launched a reopening of its 2020 notes by issuing an additional US$150m.
The notes were originally placed in January 2013 and carry an annual 8% coupon due to increase to 9% on 31 January 2015.
The add-on notes will be priced at 100.25% for a yield to maturity of 8.85%.
Proceeds from the offering will be used for ICT projects and for general corporate purposes, the company said in a statement.
Fitch Ratings gave the notes a B+/RR3 rating.
Following the reopening, the 2020 notes will have outstanding approximately US$565m, with US$545m in senior secured notes and the remainder in senior convertible notes, according to Fitch.
Axtel, which is listed on the Mexican stock exchange, provides telephone and internet services and is Mexico’s second largest fixed-line operator after America Movil’s Telmex.
As of 30 June 2014, the company’s total debt was Ps8bn (US$605m). Following the reopening, it will increase to about Ps9.9bn (US$748.7m).
