Axtel has sought permission from bondholders to offer US$150m of new notes to fund its capex needs.
The Mexican fixed-line operator has asked those in possession of its dollar-denominated senior secured notes due 2020 to reply to the consent…
Axtel has sought permission from bondholders to offer US$150m of new notes to fund its capex needs.
The Mexican fixed-line operator has asked those in possession of its dollar-denominated senior secured notes due 2020 to reply to the consent solicitation by 17 June.
Citigroup and Credit Suisse are acting as solicitation agents and Axtel is offering bondholders who consent US$10 in cash for each US$1,000 they hold in notes.
Axtel plans to spend the proceeds from the proposed US$150m issue on integrated-services projects for corporate and government customers.
The Monterrey-based telco issued the 2020 notes last December in an exchange offer after it refinanced on better terms.
Axtel offers telephone and internet services and is second only to America Movil’s Telmex in the Mexican fixed-line market.
Its stock trades on the Mexican stock exchange and it currently has a market capitalisation of US$6.2bn.
Axtel looks set to benefit from the Mexican regulators clamp down on Telmex’s dominant market position. The Carlos Slim unit has around 80% of the local fixed-line market.
