Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) ("AXTEL" or "the Company"), a Mexican fixed-line integrated telecommunications company, announced today the successful pricing of a $190 million add-on of its 9.0% Senior Unsecured Notes due 2019, sold pursuant to Rule 144A and Regulation S, originally issued on September 22, 2009, in an amount of US$300 million. These additional notes will be issued at a price of 102.5% per 100.0% of principal amount and will bear a yield to maturity of 8.609%.
The international offering is expected to close on March 22, 2010, subject to customary closing conditions. The proceeds of the transaction will be used (i) to prepay principal amount of indebtedness outstanding under our 2012 Term Loan Facility, (ii) to repay approximately US$32 million of short-term indebtedness, (iii) to fund approximately US$30 million of principal installments on indebtedness that will become due during 2010, and (iv) for general corporate purposes, capital investments and working capital requirements.
These additional notes and the guarantees thereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This announcement is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase.
About AXTEL
AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 39 cities and data and long distance telephone services to business and residential customers in close to 200 cities. AXTEL provides telecommunications services using a suite of technologies including FWA, WiMAX, copper, fiber optic, point to multipoint radios and traditional point to point microwave access, among others.
AXTEL''s shares, represented by Ordinary Participation Certificates or CPOs, trade on the Mexican Stock Exchange under the symbol ''AXTELCPO'', and are part of the IPC Index. AXTEL''s American Depositary Shares are eligible for trading on The PORTAL Market, a subsidiary of the NASDAQ Stock Market, Inc.
Visit AXTEL''s Investor Relations Center at www.axtel.com.mx.
Forward-Looking Statements
This document 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.
Contacts:
Axtel, S.A.B. de C.V.
Investor Relations:
Adrian de los
Santos, +52(81)8114-1226
IR@axtel.com.mx
