Axtel Announces 65% Participation During the Early Tender Period and the
Signing of the Tower Sale Agreement with American Tower Corp
SAN PEDRO GARZA GARCIA, Mexico -- January 24, 2013
Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) (“AXTEL” or “the Company”),
a Mexican fixed-line integrated telecommunications company, today announced
that the Company has obtained 65% aggregate participation as of the expiration
of the Early Tender Date with respect to the exchange offers being made by its
subsidiary Axtel Capital, S. de R.L. de C.V. to exchange any and all of
AXTEL’s outstanding Senior Notes due 2017 and 2019 (the “Old Notes”) for new
Senior Secured Notes and Senior Secured Convertible Dollar-indexed Notes, both
due in 2020 (the “New Notes”), and a cash payment (the “Exchange Offers”).
Additionally, the Company is also pleased to announce the signing of
definitive agreements with MATC Digital, S. de R.L. de C.V., a subsidiary of
American Tower Corporation (“American Tower”), for the sale of 883
telecommunication sites for approximately US$250 million. As previously
informed, AXTEL is agreeing to lease back space on these telecommunication
sites from American Tower for initial minimum lease terms ranging from 6 to 15
years depending on the technology installation at each site. The closing of
this transaction is conditioned upon and expected to occur concurrently with
the closing of the Exchange Offers on January 31, 2013.
Mr. Felipe Canales, AXTEL´s Chief Financial Officer, stated, “We are very
pleased with the tower sale transaction. Not only because it is a key element
of the recapitalization strategy we announced mid last year, but also because
we are partnering with American Tower, a world-class company that will
significantly contribute to enhance our operating performance”. Mr. Canales
went on to state, “We are also in the final stage of successfully closing the
notes’ exchange offer. This will strengthen AXTEL’s capital structure and
permit the Company to continue implementing its key strategic initiatives."
Other important information
The consummation of the Exchange Offers and related consent solicitations are
subject to the conditions set forth in the Offer to Exchange. The complete
terms and conditions of the Exchange Offers and consent solicitations are
described in the Offer to Exchange, copies of which may be obtained by
eligible holders by contacting D.F. King & Co., Inc., the information agent
for the exchange offers and consent solicitations, at 48 Wall Street, 22nd
Floor, New York, New York 10005, (212) 269-5550 (collect) or (800) 967-4612
(toll free), or firstname.lastname@example.org. The New Notes have not been registered under
the Securities Act, or any state securities laws, and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements, and will therefore be subject to substantial
restrictions on transfer.
This announcement is for informational purposes only and does not constitute
an offer to sell or a solicitation of an offer to buy the New Notes nor an
offer to purchase Old Notes nor a solicitation of Consents. The Exchange
Offers and Consent Solicitations are being made solely by means of the Offer
to Exchange and the related Consent and Letter of Transmittal.
AXTEL is a Mexican telecommunications company with significant growth in the
broadband segment, and one of the leading companies in information and
communication technologies solutions in the corporate, financial and
government sectors. The Company serves all market segments - corporate,
financial, government, wholesale and residential with the most robust offering
of integrated communications services in Mexico. Its world-class network
consists of different access technologies like fiber optic, fixed wireless
access, point to point and point to multipoint links, in order to offer
solutions tailored to the needs of its customers.
AXTEL's shares, represented by Ordinary Participation Certificates or CPOs,
trade on the Mexican Stock Exchange under the symbol 'AXTELCPO' since 2005.
This release contains certain forward-looking statements regarding the future
events or the future financial performance of AXTEL that are made pursuant to
the safe harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. These statements reflect
management's current views with respect to future events or financial
performance, and are based on management's current assumptions and information
currently available and are not guarantees of the Company's future
performance. The timing of certain events and actual results could differ
materially from those projected or contemplated by the forward-looking
statements due to a number of factors including, but not limited to those
inherent to operating in a highly regulated industry, strong competition,
commercial and financial execution, economic conditions, among others.
Adrian de los Santos, +52(81) 8114-1128
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