Axtel Says Majority of Bondholders Approve of Debt RestructuringChristine Jenkins
Axtel SAB, Mexico’s second-largest landline telephone carrier, said a majority of creditors accepted its debt-restructuring offer after the company improved the terms of the exchange.
The bondholders accepted a combination of senior secured debt, peso-denominated convertible bonds and cash, which would replace dollar senior unsecured debt due in 2017 and 2019, Axtel said in a statement late yesterday.
Axtel, based in San Pedro Garza Garcia, Mexico, unveiled a new swap on Jan. 14 that improved the terms of its $765 million debt restructuring after 40 percent of creditors rejected the initial offer.
The company “obtained a satisfactory level of participation that included the managers of accounts owning the two largest holdings,” Chief Financial Officer Felipe Canales said, according to the statement.
Axtel is in the process of selling tower assets to American Tower Corp. for $250 million in a transaction dependent upon the success of the debt exchange.