Mexican telco Axtel is issuing US$146m in senior secured notes due 2020 with an incremental interest rate in exchange for older paper.
The new notes will carry an initial 7% interest rate, rising to 8% in January 2014, and then 9% in 2015 up until their…
Mexican telco Axtel is issuing US$146m in senior secured notes due 2020 with an incremental interest rate in exchange for older paper.
The new notes will carry an initial 7% interest rate, rising to 8% in January 2014, and then 9% in 2015 up until their maturity.
In a statement, Axtel said US$110m of the 2020 notes will be offered in exchange for its 7.625% senior notes maturing in 2017 and its 9% senior notes due 2019. Bondholders have until 20 December to participate in the exchange.
The Monterrey-headquartered operator will sell the remaining US$36m 2020 notes in a private offering.
In a report Fitch rated the new secured notes at B+, higher than the 2017 and 2019 unsecured paper which it had attached a B- ranking to.
Axtel offers telephone and internet services and is second only to America Movil’s Telmex in the Mexican fixed-line market.
The company looks set to benefit from an expected clamp down on Telmex’s dominant market position by Mexico’s newly-formed regulator, the IFT, which can now take steps to reduce an operator’s market share if it could negatively affect competition. Telmex has around 80% of the local fixed-line market.
Axtel’s stock is trading around 35% higher than it was at the start of the year at just over the US$3.90 mark.
